British motorists are being hit with the world's second most expensive diesel, research for This is Money has revealed.
At an average 137.26p a litre in mid-July the diesel price is still riding high - and 85p of that price per litre is tax.
Diesel prices are a hot topic for motorists in Britain. Many drivers have switched to diesel cars in recent years as they believed it would save them money in the long-run. But high prices mean our diesel is the second most expensive in the world and we come fifth for the amount of disposable income we spend on the fuel.
Diesel: Prices have remained higher than unleaded for some time - and it comes as diesel car sales outstripped petrol sales last year for the first timeFigures from the Society of Motor Manufacturers and Traders (SMMT) revealed that sales of diesel motors outstripped their petrol counterparts for the first time since their records began.
However, at the same time, diesel prices have remained higher than unleaded. According to the latest AA figures, diesel prices stood at 137.26p a litre in mid-July – more than 5p higher than the 132.18p a litre currently charged for unleaded.
Research last week revealed by consumer watchdog Which? found that diesel cars take over a decade to save a driver money.
It concluded: ‘With drivers having to pay a premium for a diesel car – typically £1,000 to £2,000 more on a new car – our tests reveal it could take up to 14 years to recoup the up-front costs in fuel savings.
DIESEL COSTS 2012January - 142p
February - 143p
March - 145.5p
April - 147.9p
May - 144p
June - 139p
July - 137p
Source: AA‘Lower pump prices for petrol and advances in petrol-engine efficiency mean petrol cars now often provide better value for money.
Diesel prices have fallen in recent months to the lowest prices seen all year. In January 2012, the cost per litre for diesel was 142p, peaking at 147.9p in April. It has since fallen more than 10p to stand at 137.26p.
Back in August 2011, This is Money revealed the cheapest ten countries for petrol. This list included oil rich countries such as Saudi Arabia and Libya [read full story].
And in April 2012, we revealed the most expensive ten countries for petrol – this list was headed by Norway, with Britain coming in seventh [read full story].
So how do diesel prices in Britain compared to other countries in the world? Data from This is Money and new and used car website Evans Halshaw shows how Britain compares to other countries in the top ten.
The data also looks at the average monthly disposable income people in each of the countries mentioned has after tax, meaning we can reveal how much percentage of a motorists' monthly income is spent on filling up their diesel car in each country.
Unsurprisingly, nine of the top ten countries in the list are in Europe while in one country, an eye-watering 19.83 per cent of monthly income is spent on diesel.
METHODOLOGYThis is Money alongside Evans Halshaw, have scoured a number of sources to find the average unleaded prices worldwide.
We then compared this to the average disposable income figures, based on Numbeo data.
Monthly diesel costs are based on an individual owning a car that does 48.22 MPG, driving 12,000 miles a year.
10. FINLANDPrice of diesel: 119p
Average monthly disposable income after tax: £1,659.35
Average monthly diesel expenditure: £112.35
Percentage of monthly income spent on diesel: 6.77%
9. DENMARKPrice of diesel: 120p
Average monthly disposable income after tax: £2,031.36
Average monthly diesel expenditure: £113.30
Percentage of monthly income spent on diesel: 5.57%
8. ISRAELPrice of diesel: 123p
Average monthly disposable income after tax: £1,225.74
Average monthly diesel expenditure: £116.13
Percentage of monthly income spent on diesel: 9.47%
7. ICELANDPrice of diesel: 124p
Average monthly disposable income after tax: £1,303.87
Average monthly diesel expenditure: £117.08
Percentage of monthly income spent on diesel: 8.97%
6. SWEDENPrice of diesel: 126p
Average monthly disposable income after tax: £1,757.07
Average monthly diesel expenditure: £118.96
Percentage of monthly income spent on diesel: 6.77%
More... Top ten cheapest cars to insure: Top ten most reliable used family cars revealed Petrol at 2p a litre! But you have to go to Venezuela Petrol bills calculator and the amount you pay in tax World's ten most expensive petrol hotspots revealed Used diesel car is only cheaper if you drive more than 10,000 miles a year 5. IRELAND
Price of diesel: 128p
Average monthly disposable income after tax: £1,721.27
Average monthly diesel expenditure: £120.85
Percentage of monthly income spent on diesel: 7.02%
4. ITALYPrice of diesel: 133p
Average monthly disposable income after tax: £1,081.54
Average monthly diesel expenditure: £125.57
Percentage of monthly income spent on diesel: 11.61%
3. GREECEPrice of diesel: 136p
Average monthly disposable income after tax: £647.38
Average monthly diesel expenditure: £128.41
Percentage of monthly income spent on diesel: 19.83%
2. UNITED KINGDOMPrice of diesel: 137p
Average monthly disposable income after tax: £1,625.13
Average monthly diesel expenditure: £129.60
Percentage of monthly income spent on diesel: 7.97%
1. NORWAYPrice of diesel: 169p
Average monthly disposable income after tax: £2,586,06
Average monthly diesel expenditure: £159.56
Percentage of monthly income spent on diesel: 6.17%
Second highest diesel costs but our earnings soften the blowThe UK comes second in the list for pricey diesel. This is despite a meaty fall of 10p a litre on diesel since April.That drop shows just how high the spike was during that bleak month for motorists when tanker drivers threatened to strike.
UK diesel is considerably cheaper than in Norway, however, which has diesel prices that are 32p a litre more expensive.
But it has a much higher average monthly disposable income, with the average Norwegian earning £2,586.06 after tax. Norway's diesel may be expensive but in the top ten only Danish citizens spend less of their monthly disposable income after tax on the fuel
Greece, which has seen economic turmoil in recent years, has the third highest diesel costs in the world. However, with Greek citizens earning a considerable lower average monthly disposable income after tax than the other countries on the list, almost 20 per cent is spent by the average Greek motorist to keep their diesel vehicle on the road.
The hint of a silver cloud for Britons is that we manage to only come fifth in terms of the amount of disposable income we spend on diesel, after Greece, Italy, Israel and Iceland.
