Diesel used to cost less than petrol – why does it now cost more?
It has been more than ten years since diesel was slightly cheaper than petrol and in that time there has been a huge increase in the demand for diesel around the world, particularly in Asia which has pushed up the price of diesel from refineries so it is now higher than petrol. With new highly efficient diesel engines becoming available in more and more cars, diesel is shaping up as the fuel of choice for hundreds of thousands of private motorists and smaller commercial vehicles. For many years, diesel has been the dominant fuel for larger trucks and many commercial vehicles. The biggest growth in demand for diesel in Australia is coming from the mining and transport industries, mainly in WA and Queensland, as a result of the China driven commodities boom. Without diesel Australia’s mines simply couldn’t run. It’s used everywhere – in trucks, diggers, tippers, trains, fixed and mobile power plants. Growth in transport, agriculture and industry is the main driver behind the strong Chine
