NRMA Motoring Blog

As recently as six months ago, one of the main incentives for buying a diesel vehicle was the perceived savings on fuel compared to a vehicle using unleaded petrol. But now it’s not uncommon to see the price of diesel up to 25 cents more than regular unleaded, leaving many owners of private diesel vehicles wondering if it was all worth it.

Several factors have contributed to the diesel price rise.

The main reason for diesel being consistently more expensive than standard unleaded petrol is that most diesel is sold under contract to fleet operators, mainly for heavy vehicles. This means the volume sold at your local service station is low, leaving retailers little incentive to discount.

Also previous Government regulations allowed diesel to contain 500 particles per million of sulphur. This has recently been adjusted to allow only 50ppm resulting in the production costs of diesel and unleaded petrol being quite similar.

Diesel prices are also kept high by demand in Asia, where most transport uses diesel.

Many Australians holidaying in New Zealand come back wondering why diesel is significantly cheaper there than it is here. However, Trans-Tasman diesel prices cannot be compared, as diesel in NZ is not taxed at the point of sale. Rather, diesel vehicle owners are required to pay a Road User Charge (RUC) in distance travelled slots, making the actual cost of the journey much more expensive than it appears at the bowser.

Manufacturers and the Government may be pushing diesel as a ‘green’ alternative to petrol, but owners and potential buyers are probably questioning if diesel is indeed a fuel of the future.

What are your experiences with buying diesel? Do you still find it worth the money, despite the recent price rises?

Lord Mayor Clover Moore plans to redesign Sydney’s CBD to make it more environmentally sustainable. Part of the proposal includes making George Street a ‘pedestrian-friendly’ boulevard from Town Hall to Circular Quay, removing the Cahill Expressway and introducing car-free ‘green zones’.

Sustainable Sydney 2030’s Integrated Transport for a Connected City plans are intended to reduce traffic congestion in the city as “current levels of motor vehicle use to, from and within the city are unsustainable”.

Some of the changes aimed at reducing carbon emissions and traffic congestion include:

• • extending the existing light rail system;
• • leaving George Street open only to pedestrians, bicycles and light rail;
• • ’relocating’ the necessary surface streets so that traffic not going to the City Centre avoids going through the city;
• • increased housing in the city to reduce the number of people needing to commute long distances to and from work every day.

By increasing public space and increasing the number of motor vehicle-free roads, it is believed that people will be more willing to walk, cycle or catch public transport rather than use their cars.

Is this a realistic solution to the city’s traffic problem? Should Sydney’s Central Business District, and the CBD’s of all Australia’s major cities, be closed to all private vehicles?