Savings from diesel power
Page 6
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THE DIESEL-engined vehicle was likely to provide substantial cost savings over the petrol version provided a stipulated break-even mileage was maintained 'annually for four years. This theory was demonstrated In an article in the July issue of Freight, the journal of the Freight Transport Association.
Basing calculations on comparative fuel prices of 52p a gallon for petrol and 45p a gallon for diesel, the conclusion was reached that a saving of 18.7p a gallon was possible when the greater mileage obtainable with diesel fuel was taken into account.
However, there was an additional cost in preferring 'the diesel engine which was estimated to amount to between just over £100 and £300 in the case of a 35cWt van. Discounting the cost factors which were common to bath types, the article quoted comparative costs for a 35cwt van—reproduced here—and gave a formula with which to calculate the break-even mileage.
The effect of using lpg was likely to be even more dramatic. The per-gallon fuel tax at 11.25p was half that levied on petrol and the excise duty pay able on 'light commereial vehicles using lpg was 'assessed on the notional deduction in taxation weight of 0.5tons.
Unfortunately, the supply of lpg was unlikely to be sufficient for more than a minority of operators though some improvement was likely to result from North Sea supplies.