A diesel in your next car?
April 5, 2008
Every time I see the posted fuel pump prices, I wonder about the premium price of diesel over gasoline. Obviously the premium still makes economic sense, but I certainly didn’t have a clue. Today’s Economist helps clear the air, so to speak, since my impression of diesel vehicles is cluttered up with inappropriate images of dark smoke and stink. I know that none of you have such ill-informed prejudices, but you might find the article interesting nevertheless.
Meanwhile, back at the pump in America, diesel currently costs 20% more per gallon than regular petrol. When that premium reaches 35%, the difference in fuel efficiency will equal the difference in price—and there will be no economic reason to make the switch. Some reckon that day is only a few years away.
All of this is pretty academic for some of us. First, there are yet no efficient family diesel vehicles available. Second, I likely will not need another car at all unless I’m still driving at age 90. I’m marginally dangerous to my fellow drivers now.
Dave, driving very carefully these days.
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