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Using data from GlobalPetrolPrices.com, we conducted research and found that following 10 weeks of continual price rises of countries that fuel prices are tracked, the UK is the 9th most expensive country when it comes to purchasing diesel, ranking 155th out of 163 countries.
When looking at the price of diesel across the globe, we discovered a stark contrast in price. Derv was the cheapest in Iran at 6p per litre, which was 418% cheaper than Zimbabwe who has the most expensive diesel prices at £2.51 per litre.
The UK has been confirmed to be one of the most expensive countries to buy petrol, so it’s no surprise that diesel drivers are also burdened by heightened fuel prices. There are a number of factors that influence the prices of diesel which we discuss below.
One of the main factors that affect the price of diesel is taxation and any Government subsidisation of the price of fuels. That’s why the price of the fuel varies from being as expensive as £2.50 per litre in Zimbabwe, to costing nothing in Venezuela. In the UK, more than 60p in every pound of fuel goes to the Treasury.
However, as a diesel supplier, the price of diesel fluctuates due to a variety of reasons and you should never delay buying diesel to the last minute – for example in winter when prices tend to be highest.
Elements of the price of fuel in the UK are completely out of the country’s hands. Most of the world’s crude oil comes from notoriously volatile countries. For example, instability in major oil-producer countries like Iraq, Libya and Venezuela has resulted in the relative scarcity of crude supplies. Recent tightening of sanctions on Iran by the Trump administration is anticipated to reduce Iran’s exports to zero, which will affect the availability of crude. It’s likely that summer fuel prices may skyrocket in the UK.
Crude oil is the starting point for many products – from fuels like petrol, diesel and kerosene, to lubricants and much more. Even plastics, rubbers used in car tyres and the tar that binds our roads together begin life as crude oil. So when its supply is affected for whatever reason, its price increases, which we then experience at petrol stations.
Supply and demand are a significant contributor to an increase in winter prices. Many people require heating oil or kerosene for heating which adds tension to the supply chain as these fuels are produced at the same time as derv. So as the demand for heating fuel increases, as do prices.
The price of crude oil trade is dollar-based, meaning the performance of the pound sterling will influence what customers pay to fill their engines with diesel.
A fluctuation in the pound, such as the volatility we’re seeing with the uncertainty surrounding Brexit, impacts the final price of diesel and fuel in general, as a weaker pound makes it more expensive for fuel suppliers and retailers to buy it.
Another factor that affects fuel prices is logistics which varies between location. Unlike most products, retailers do not require a national price, and hard-to-reach areas can make up the expenses of lower prices in more competitive locations.
What’s more, the cost of having fuel delivered and the distance from your supplier will be factored into the overall price.
These factors affect petrol stations and ultimately private consumers and businesses that require diesel for their commercial use.
Here at Speedy Fuels, we always endeavour to provide the most competitive prices to our customers all year round. We purchase our diesel in bulk so we can experience cheaper wholesale prices to enable us to then pass on those savings to you. For today’s live diesel price, call 0330 123 3773 today.