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Diesel users lose again..

25th October 2001
Page 8
Page 8, 25th October 2001 — Diesel users lose again..
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Which of the following most accurately describes the problem?

• UK hauliers are missing out on the benefits of falling world oil prices. While unleaded petrol prices have been falling steadily since June, diesel prices have remained broadly unchanged as crude oil prices fell from $29 to $21 a barrel.

According to the Freight Transport Association, contract bulk diesel prices stand at 81.7p/lit compared with 62.3p/lit in June.

The change in the relative price of unleaded petrol and diesel has been most noticeable on the forecourts. In June diesel prices were 0.8p/lit less than unleaded: by mid-October they were 2.6p/lit more. Simon Chapman, the FTP chief economist, says: "Petr purchasers are benefiting from double whammy. Refineries w producing as much gas oil they can at the moment to me' higher demand for heating fu as winter approaches. As thE do so they also produce moi gasoline as a result.

"But with lower demand f( gasoline in winter there is moi unleaded fuel available than it market is using. This, combinE with lower crude oil prices, 1-ri meant unleaded prices are fallir sharply. However diesel is a sin lar product to gas oil and the prices are therefore linked."

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