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Britain could run out of diesel, RAC Foundation warns

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Author: | Updated: 16 Sep 2015 10:32

Britain’s growing dependence on diesel cars could result in a crippling gap between supply and demand in coming years, according to the RAC Foundation’s latest report.

Diesel is selling twice as fast as petrol currently and that could grow to four times by 2030, the independent motoring charity says.

It adds that while demand for petrol in the UK has increased by 46% in the past 20 years, demand for diesel has grown by 76% and that could increase by another 20% in the next 15 years. By 2030, diesel could outsell petrol by four litres to one.

fuel petrol diesel pump

Britain’s increased reliance on diesel is down to fewer refineries in the UK. Since 2009, three of the nine refineries have been sold while the remaining six have been or are still up for sale.

The number of diesel cars on UK roads has exploded from 1.6million in 1994 to 11m in 2014, and half of all cars sold in the UK so far this year have been fuelled by diesel (50.3%).

Meanwhile, the number of HGVs has grown from 421,000 to 474,000 in the same timescale, reaching a peak of 510,000 in 2007 ahead of the recession.

Could the price of diesel fall below £1 per litre?

Steve Gooding, Director of the RAC Foundation, said: “Diesel-engined cars, van and lorries are deeply engrained in our society. Today, every other car bought is a diesel, but our refineries have struggled to keep pace with demand and have not attracted the investment they need to switch over from petrol production.”

Switching over existing refineries to produce diesel isn’t an option, he added: “Most of our refineries – some of which are more than half a century old - were built when diesel was a niche product.

“Retrofitting them is a billion pound decision that has failed to stack up for investors who see refining as a low margin business despite our sky high pump-prices.”

He added that a lack of diesel refineries has left the UK “at the mercy of the global market and much of the rest of Europe is in the same boat. We are having to look further and further afield for the fuel we need.”

Earlier this year, diesel pump prices became cheaper than unleaded for the first time in 15 years, due to lower wholesale prices.

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