Why is diesel so much more expensive than gasoline?

Many readers deal with questions about fuel prices. After a year of fairly good compliance between gasoline and diesel, the distance began to increase in September.

In mid-October, the price of diesel was slightly higher by 80 pounds at the price of gasoline. Now everything is different from SEK 1:15 per liter.

"We are now in a position where Sweden has the highest diesel price in the EU.I do not remember that it was so early," says CEO Ulf Svahn.
SPBI, Swedish Petroleum Association and the Institute of Biofuels.

If you go back up in 2010, the evolution shows essentially two images: the level of compliance or the gasoline is a bit higher than the price of diesel.

Now the relationship is reversed – with a gradual increase in distance.

At preem It stands out in 1:15 crowns between 95 octane gasoline and diesel-type Evolution, which has a high incidence of renewable tall oil, among others.

Even larger, the distance to the HVO100, which is a fully renewable diesel quality, has increased dramatically in recent years.

The price of the HVO100 is now at 16:51, 90% more than the Evolution diesel. Compared to gasoline, the difference is at 2:20.

This means that volumes have decreased at certain times since the end of the year, according to the Swedish Transport Administration.

"This is probably due to the increase in the price of HVO100 over diesel," writes the Swedish transport agency.
Climate survey.

If the sale of diesel with a high proportion of renewable energy continues to decline and is replaced by less expensive diesel, containing a greater proportion of fossil fuels, it means an increase in carbon emissions of fossil origin due to traffic. HVO Low Voltage and HVO100 plus Fame have so far contributed to a significant reduction in traffic emissions. Biodiesel represents 85% of biofuels used in road traffic,
according to the Swedish Transport Administration.

What grows developments?

Ulf Svahn sees several cooperative factors:

"Basically, we have a world market price of diesel fuel, now about a crown on gasoline." One of the explanations is a good global economy, which creates transportation needs, he says.

punishments Against Iran, as well as the chaos of Venezuela and Saudi Arabia's decision to cut back on production, they all produce heavier oils, he says.

"The recent production of crude oil is that of American shale oil, which is simple in composition,

"All the crude oils that have disappeared from the market are heavier and the entire petroleum complex has been transferred to gasoline,

"And there is no more margin, there is no refinery that earns money with gas today," says Ulf Svahn,

In addition to that, Sweden has a cleaner diesel quality MK1, which is more expensive than the standard diesel MK3.

Sweden has also the highest inclusion of renewable components in diesel than the rest of the world, just over 20%.

"Biofuels cost more than fossils, and with the reduction obligation starting on July 1, a full fee applies to everything that is mixed, which makes it even more visible," says Ulf Svahn.

Andréa The Hague is Director of Sustainable Development at OKQ8. On the question of whether the price of diesel could go down, she says:

"I do not dare to see if diesel becomes cheaper." Fuel prices are governed by geopolitical factors, dollars and annual fluctuations, as well as by more fixed parameters such as taxes and biocides. she said.

Read also: How is the world economy affected by oil prices?