Sometimes the price of diesel exceeds that of gasoline. But how is this explained? We tell you everything below.
This is not new, diesel is known to cost less than gasoline at the pump, in particular because of lower taxation. A strong argument in favor of this fuel, which is nevertheless increasingly unloved and decried by the public authorities, who would now like to see it purely and simply disappear. But sometimes it happens that the diesel fuel exceeds unleaded in terms of price, as was the case a few weeks ago. How is it possible ? In reality, several factors come into play to explain this curious phenomenon, and in particular the system of supply and demand. But not only.
Supply and demand
Like all products and services, the price of fuel is obviously indexed to supply and demand, which explains why diesel is more expensive than gasoline when demand is higher. This explains the rise in prices, which is all the stronger since most of the oil used comes from Russia. Except that the 2nd largest exporter in the world has very clearly reduced the pace, in particular because of the sanctions which have been imposed on it since the start of the war with theUkraine. Imports are down, and therefore the price is going up, it makes sense.
But why is the demand for diesel stronger, when this fuel is in decline? This could be explained in particular by the strong needs of the Russian and Ukrainian armies to supply their tanks and other machines. Not to mention many cars still running on diesel throughout Europe.
Also read on Auto-Moto.com:
Fuel: the discount already applied in some supermarkets
Fuel: 1 in 5 gas stations will apply the discount later
Fuel: will we have to drive slower?
Sometimes the price of diesel exceeds that of gasoline. But how is this explained? We tell you everything below.
This is not new, diesel is known to cost less than gasoline at the pump, in particular because of lower taxation. A strong argument in favor of this fuel, which is nevertheless increasingly unloved and decried by the public authorities, who would now like to see it purely and simply disappear. But sometimes it happens that the diesel fuel exceeds unleaded in terms of price, as was the case a few weeks ago. How is it possible ? In reality, several factors come into play to explain this curious phenomenon, and in particular the system of supply and demand. But not only.
Supply and demand
Like all products and services, the price of fuel is obviously indexed to supply and demand, which explains why diesel is more expensive than gasoline when demand is higher. This explains the rise in prices, which is all the stronger since most of the oil used comes from Russia. Except that the 2nd largest exporter in the world has very clearly reduced the pace, in particular because of the sanctions which have been imposed on it since the start of the war with theUkraine. Imports are down, and therefore the price is going up, it makes sense.
But why is the demand for diesel stronger, when this fuel is in decline? This could be explained in particular by the strong needs of the Russian and Ukrainian armies to supply their tanks and other machines. Not to mention many cars still running on diesel throughout Europe.
Also read on Auto-Moto.com:
Fuel: the discount already applied in some supermarkets
Fuel: 1 in 5 gas stations will apply the discount later
Fuel: will we have to drive slower?
