Why Does Diesel Cost More?

Motorists always complain about the growing price of diesel, the cost rises up almost every other day. Diesel got its name from German inventor named Rudolf Diesel who invented the first car to run on diesel in 1892.

Advantages of a Diesel Engine

People are of a view that diesel is more efficient as compared to most engine fuel. It is preferred more than gasoline for the following reasons:

It makes less noise in the machine.

Low and less maintenance is required for the machine running on diesel.

Diesel does not make any spark.

Diesel is almost 50% lower than gas in terms of Kilowatt consumption.

diesel Why Does Diesel Cost More?

Uses of diesel

Besides being used as fuel, diesel is also used widely in construction equipment and industrial plants. Generators running on diesel supply power for construction, hospital, marine, telecommunications and mining industries.

Supply and demand makes diesel expensive

Diesel fuel is extracted from crude oil lying deep in the ground. Crude oil is made up of different hydrocarbons. Gas is a finer petroleum product than diesel which makes it more expensive. When looking from economic point of view. When more gas is refined, the process can be upgraded to make it sell at a cheaper price. This is the reason when unleaded gas came out. It fetched a higher price than leaded gas. But when cars switched to unleaded gas, lead gas turned expensive. Lead is used as an additive for cooling down the gas so it should be more expensive that unleaded gas.

Another possible reason for diesel to be more expensive is that it is taxed higher than gasoline. Diesel formation in the USA has been diluted, that’s why there is more demand for it than gasoline.  In the Philippines, diesel was cheaper than gasoline. The reason was because the demand of gasoline was more than diesel. Later, car owners switched to diesel vehicles to decrease their expenses. This resulted the fuel manufacturers to earn more profits. For motorists, diesel is priced at a high rate because it gives more mileage to their car.

Diesel versus petrol

The diesel price remains highly unstable. It is affected by many forces, the most of which is supply and demand. There are some groups who are concerned for environmental safety because of diesel but it has little to do with its high price. It has much to do with taxes and other costs.

Lastly, cars that run on diesel can also run on cooking oil and other biodiesel. Diesel has higher power density because it is oilier than petroleum. This is the reason for its efficiency over petroleum- based fuel. It is also perceived to be more nature friendly. In terms of generated energy, diesel makes 40 megajoules compared with petroleum’s 35.  Most of all, cars that run on diesel fume much lower carbon emissions than those running on petroleum oil which makes a difference of almost 25%.

As manufacturing is concerned, diesel is certainly easier and cheaper. A reed-like plant called Jathropa grows in temperate counties is now starting to be considered as an alternative to diesel.  Although oil prices still remain unpredictable.

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