Why Are Diesel Cars More Expensive?

While analyzing the factors that influence gasoline and oil costs is a task worthy of a business school dissertation, we can simply state that European drivers pay more than twice our prices—seven dollars for a gallon of gas and six dollars for diesel (see graph). Why is there such a large difference? Fuel taxes in Europe are not just historically higher, but diesel is also less expensive than gasoline. It’s been this way for more than a decade. The high European tariffs generated a significant change in customer demand over time.

Because our gasoline is so cheap, and diesel engines are so much more expensive to produce, Americans haven’t been screaming for them. Diesel engines are more expensive because they require additional equipment, such as a turbocharger, to achieve power levels comparable to those of a gasoline engine. Internal components that can withstand higher compression ratios are also required. At current U.S. gasoline rates, the time it takes to “pay back” the $1500 to $3000 cost premium of a diesel engine with fill-ups at the pump is quite long. Consider a $20,000 gas automobile that gets 30 miles per gallon (3.33 gallons per 100 miles). Check out the $1500 diesel engine option for a 30 percent efficiency boost (39 mpg or 2.56 g/100m). The diesel will save roughly 115 gallons over the course of a year of 15,000 miles. With today’s fuel costs, recouping that $1500 investment would take more than four years. The payback is less than two years at six dollars a gallon for Euro diesel versus seven dollars for gas.

Despite the fact that gas-electric hybrid systems are more expensive than diesel engines, these vehicles are becoming more popular. “In 2007, 56 percent of buyers stated they would consider a hybrid,” says Mike Omotoso, JD Power and Associates’ senior manager of powertrain forecasting. “That number increased to 62 percent in 2008,” he says. Depending on which car manufacturer you ask, the particular cost penalty of both hybrids and diesels varies. Toyota’s U.S. operations chief, Jim Lentz, told us that developing a hybrid system like the one in the Prius is less expensive than developing a 50-state diesel. However, according to Wolfgang Hatz, Audi’s powertrain chief, a hybrid system costs twice as much as a current diesel. So, who is correct? The solution is dependent on a company’s core competencies. Because they’ve been servicing their native markets for years, European manufacturers have a long history of producing and developing diesels at a lower cost. On the other side, the Japanese have focused on hybrids.

Modern diesels, unlike hybrids, which have a green reputation in this country, must still overcome the image of the past’s soot-belching, unreliable oil-burners. Furthermore, because diesel does not evaporate like gasoline, the pumps are dirtier, regardless of how clean the diesel engines are. There’s also a new barrier for diesels in the United States: tighter pollution standards. The nitrogen oxide emissions limit for light-duty vehicles in all 50 states is 0.07 grams per mile. The limit in Western Europe is 0.29. When compared to a gas engine, reducing NOx to nitrogen and oxygen is much more difficult with a diesel engine since the exhaust is often hotter and contains less oxygen. Diesel engines must use complicated—and expensive—high-pressure fuel injection and after-treatment systems to meet US rules, which in some cases inject an aqueous urea solution to control NOx. Of course, the additional cost means a longer payback period for the consumer.

Despite the fact that Honda and Toyota recently scrapped plans to bring a diesel car to the United States, diesels are still on the rise—mostly from German automakers. At least two diesel versions are available from Mercedes, VW, and Audi. Ford recently unveiled a brand-new diesel truck.

With the exception of the VW Jetta TDI and, to a lesser extent, the new Audi A3 TDI, the only diesels available in the United States are high-priced premium vehicles and SUVs. So, even if more diesels are on the way, when will we see the little, economy diesels that abound in Europe? Take a deep inhale and don’t hold your breath. With the exception of Volkswagen, all of the automakers we spoke with claimed that at current fuel costs, American small-car buyers are unwilling to pay more for diesels. Instead, we’ll see a variety of powertrains in the future. Gas engines will continue to dominate our automobiles for the foreseeable future. Hybrids are expected to account for 9.5 percent of the passenger car market by 2015 (up from 3 percent this year), while diesels will account for just 3.5 percent of the market by 2015 (up from less than 1% this year), according to JD Power’s Omotoso. However, if gasoline prices in the United States rise faster than economists estimate, we may see a greater adoption of diesel and hybrid vehicles.

Why diesel cars are more expensive than petrol?

Diesel requires less refining, which explains its slightly lower cost. Diesel is also more greasy and heavy than gasoline, which evaporates slowly (in fact, diesel has a greater boiling point than water). Diesel cars are labeled as being more fuel efficient due to this, as well as efficient engines.

Why are diesel engines so expensive?

The majority of the cost of fuel is made up of various taxes, which account for more than half of the total cost. To break it down, the central government charges Rs 32.98 and Rs 31.83 in excise duty on petrol and diesel, respectively. The state government also levies a VAT of Rs 18.36 for petrol and Rs 18.45 for diesel. A dealer commission is added to the fuel prices in addition to this.

For as long as anybody can remember, there has been a controversy about whether to buy a petrol or diesel car. Because of a variety of variables, various people had different preferences. One of the most important was the cost of gasoline. Previously, diesel was significantly less expensive than gasoline. Things have begun to change, though, as a result of the new rates. Because diesel has outperformed gasoline, many buyers are hesitant to buy a diesel-only vehicle.

We looked into whether buying a diesel automobile instead of a gasoline car makes sense.

Maintenance, efficiency, and cost are the three key variances or markers of dissimilarity between petrol and diesel cars in principle. The cost of diesel fuel was cheap, but the cost of cars was high. Diesel cars were also expensive to maintain, which added to their high cost. Because the quality of the diesel was poor, the vehicles required frequent maintenance, making them a high-maintenance vehicle. However, in recent years, the quality has significantly increased, making this issue a little less of a problem for customers. With a mileage difference of at least 4-7 km/l, high-efficiency diesel automobiles clearly have the upper hand, especially when compared to their petrol counterparts.

With the new pricing, the cost of diesel has overtaken that of gasoline, reversing this criterion completely. We chose the Ford Ecosport as the test vehicle for this investigation. As of June 24, petrol costs Rs. 79.76 per liter in Delhi, while diesel costs Rs. 79.88 per liter.

Is it worth buying a diesel car?

Simply said, if you drive a lot of high-speed miles on a regular basis, such as a regular highway commute rather than a lot of small excursions, you should get a diesel automobile. Diesel cars have higher fuel economy than their gasoline counterparts, as well as more torque for towing and other applications.

Diesel automobile prices are currently declining as a result of diesel’s demonization in recent years due to its health and environmental consequences. As a result, used diesel car costs seem appealing, but they are only suitable for a certain sort of driver. If you misuse a diesel car or purchase an older model, you could face high fines and perhaps be barred from driving in city centers.

Continue reading to learn everything you need to know about deciding between a petrol and a diesel car. You might also be interested in our recommendations to the finest electric and hybrid cars, and if you’re considering of parting with your car, why not use our free online car valuation tool.

Is diesel car more expensive to maintain?

Diesel autos have higher maintenance costs than gasoline cars. This is due to the higher cost of diesel vehicle consumables such as engine oil and spare parts. A used diesel car has a better market value than a used petrol car. A petrol engine, on the other hand, has a longer life than a diesel engine.

Pros of diesel cars

  • Because they emit 20% less CO2, they are generally taxed at a lower rate. This means you’ll pay less in car tax for the first year, but the regular £140 will apply after that.

Which wins?

This question does not have a clear answer. For some, a diesel car is the finest option, while for others, gasoline is the best option. Experts claim a diesel car will not save money unless owners drive 10,000 miles per year in a used car or 6,000 miles per year in a new automobile. So, if your mileage is smaller than these estimates or you just plan on keeping your car for a few years, a petrol automobile may be a better choice.

Whether you drive a diesel or a gasoline automobile, it’s always a good idea to shop around for car insurance to obtain the best cost. When determining how much you should pay for your premium, insurers evaluate a number of factors. They consider the cost of replacing your car if it were written off as well as the cost of repairing it. Because diesel automobiles are more expensive to purchase than their petrol counterparts, you may have to pay extra for insurance.


http://www3.imperial.ac.uk/newsandeventspggrp/imperialcollege/newssummary/news 22-5-2017-10-31-19


Why don t more cars use diesel?

EarthTalk Greetings: I’m not sure why many European diesel automobiles with good mileage ratings aren’t accessible in the United States. Are you able to enlighten me?

Different countries have different regulations for how much pollution gasoline and diesel automobile engines are allowed to generate, but the reason you see so few diesel automobiles in the United States is down to automakers’ decisions rather than a regulatory mandate on either side of the Atlantic.

Since the dawn of the automobile era in the United States, gasoline has reigned supreme; now, gasoline powers upwards of 95 percent of passenger vehicles and light trucks on American roadways. And the federal government has contributed to this by taxing diesel at a rate that is almost 25% more than gasoline. According to a recent study conducted by the American Petroleum Institute, federal taxes account for 24.4 cents per gallon of diesel but just 18.4 cents per gallon of gasoline.

In Europe, where diesel vehicles account for about half of all vehicles on the road in certain regions, these tax incentives are reversed, with diesel drivers receiving the financial benefits.

However, according to Jonathan Welsh, the author of the book, “Interest in diesels—which normally offer better fuel efficiency than gas-powered cars—has grown significantly in recent years in the United States, according to The Wall Street Journal’s “Me and My Car” Q&A column. Diesels’ popularity soared, albeit briefly, in the mid-1970s, after the United States experienced its first oil embargo “Oil shock” caused gas prices to skyrocket. However, as gas prices fell, so did American enthusiasm for diesel vehicles.

With so much attention on staying green these days, diesel cars—some of which have similar fuel economy statistics to hybrids—are making a comeback in the United States. Diesel fuel sold in the United States now must meet ultra-low emissions rules, which appeals to individuals worried about their carbon footprints and other environmental implications. Furthermore, the greater availability of carbon-neutral biodiesel—a type of diesel fuel derived from agricultural wastes that can be used in place of ordinary diesel without requiring engine modifications—is persuading a new generation of American drivers to consider diesel-powered vehicles. Only Volkswagen, Mercedes-Benz, and Jeep currently offer diesel cars in the United States, but Ford, Nissan, and others aim to launch American versions of diesel models that have proven successful in Europe within the next year.

Meanwhile, the US Coalition for Advanced Diesel Cars, a trade group that represents several automakers as well as parts and fuel suppliers, wants the US government to increase incentives for American drivers to choose diesel-powered engines by leveling the fuel taxation field—so that gasoline and diesel can compete fairly at the pump—and by increasing tax breaks on the purchase of new, more fuel-efficient diesel vehicles. One stumbling block is the scarcity of diesel pumps across the United States, but if these vehicles become more popular, filling stations that don’t already have them can easily add one or two.

Why are diesels not popular in America?

Pure and simple, America is fueled by gasoline. This country ships billions of tons of goods every day, yet gas engines account for the vast majority of its engines. Unlike our European counterparts, the vast majority of American automobile consumers prefer gasoline engines to diesel engines. In fact, diesel-powered automobiles account for more than half of all vehicle sales in Europe, with Italy and France accounting for more than 70% of the market.

Buying a diesel engine makes perfect sense from a purely logical standpoint: diesel engines are around 45 percent more efficient than gasoline engines. Anyone considering purchasing a diesel engine should consider the fuel savings.

Gas prices have reached all-time highs in recent years, with a barrel of oil topping $147.27 in July of 2008. During that time, diesel vehicle sales in the United States increased considerably. However, once the oil and gas industry bottomed out in 2014, demand fell off once more. The price of a barrel of oil had plummeted to $47.32 in August 2016. Gas is currently priced at or below $2.00 a gallon across the United States.

Still, the majority of Americans are wary of diesel engines. In America, the word “diesel” has a bad connotation. People associate diesel with smelly, noisy, and polluting trucks. Diesel engines were once regarded to be pollutants, but the pollution problems that plagued previous generations of diesel engines have since been resolved. Starting in the mid-1990s and lasting through 2034, the EPA Tier Regulations ensure that engines pollute less. NOx emissions have been decreased by 72 percent on average using diesel particulate filters, diesel exhaust fluid, selective catalytic converters, and exhaust gas recirculation technologies. Back in the mid-2000s, the initial engineering with these environmental solutions resulted in a reduction in engine horsepower. Many diesel truck owners despised the newer technology because of the higher maintenance expenses, poorer torque ratios, and decreased horsepower. These issues have now been resolved, and emissions technology has been proved to boost horsepower and engine efficiency. Cummins will debut a diesel engine in 2017 that decreases NOx emissions by more than 90% while delivering one of the highest power ratings for a diesel engine. The stigma still exists.

Many automakers continue to make significant investments in diesel technology. Even luxury automakers like Porsche offer diesel-powered Cayenne and Panamera models. BMW recently introduced the M-Performance diesel vehicles, which feature three turbochargers. These new models are completely compliant with American and European CO2 pollution requirements while still zipping down the road with elegance and speed.

Overcoming the VW Diesel Engine Scandal

Chevrolet and Mazda, two mid-priced automakers, have recently jumped on board the diesel train. Chevy developed a Cruze variant with a 160 horsepower 2.0L turbocharged diesel engine that gets an astounding 42 miles per gallon in 2013. Mazda has introduced a CX-5 Crossover that competes on fuel efficiency with the Porsche Cayenne. Diesel sales peaked in the United States five years ago, when they increased by 27.4 percent. The Volkswagen Scandal of 2015, on the other hand, put a halt to much of the car diesel sales in the United States. The EPA punished the corporation after it was found to be in breach of the Clean Air Act of 1970. The corporation willfully concealed the fact that their engines did not meet emissions standards and fudged data in order to pass emissions tests. The controversy cost the firm $1.2 billion and tarnished the image of diesel engines in the United States. The corporation has repaired over 11 million cars worldwide and has paid dealers an average of $1.86 million in compensation for unsold vehicles.

But, for the most part, America will continue to be a gasoline-powered country. In the United States, hybrids and electric automobiles are the most popular alternative fuel vehicles. Tesla, Chevy, Toyota, Nissan, and Honda are just a few of the automotive companies that have introduced hybrid or fully electric vehicles. Some automakers, primarily German automakers such as Mercedes-Benz, are still experimenting with automobiles that have both gasoline and diesel engines. The business unveiled two new E-Class hybrid automobiles, one with a diesel engine that gets 56 mpg and the other with a gas engine that gets 26 mpg. In the United States, however, only the gas-powered vehicle will be offered.

President Barack Obama said in 2011 that by 2025, automakers must achieve a Corporate Average Fuel Economy (CAFE) of 54.4 mpg across their entire fleet of cars. Over the course of the program, these new regulations will save consumers $1.7 trillion in fuel expenses. It would make sense to manufacture diesels across the United States. However, neither automakers nor buyers in the United States are enthusiastic about diesel.

American Consumer Attitude Towards Diesel Engines

Mazda explained why diesel vehicles aren’t more popular in the United States, claiming that the benefits aren’t instantly apparent to American consumers. Diesel is significantly more expensive at the pump than gasoline, even more so than premium fuel. The fuel economy of a diesel engine saves money over the engine’s lifetime. A diesel engine is more expensive to manufacture and purchase. The consumer must figure out how much money they will save over the course of their driving career.

Although Americans are capable of doing the math and comprehending the concept of long-term fuel savings, their overall purchasing pattern favors instant pleasure and cheaper initial prices. The fuel savings of diesel engines are not worth the upfront costs if a consumer leases a vehicle. In comparison to gasoline, a single tank of diesel fuel gets 40 percent to 45 percent higher mileage. However, compared to a gas-powered option, the upfront costs are $2,700 higher.

Mazda’s price argument is, at best, a shaky one. In America, hybrids are selling at a rate more than three times that of diesel engines, and they cost at least $6,500 more than gas engines. The main difficulty with diesel cars in America has always been their image. Diesel is still linked with filthy, noisy, and out-of-date truck and heavy equipment technologies. Hybrids appeal to the ordinary consumer because they are sleek, seductive, and environmentally responsible.

With gas costs at their lowest in years, there’s no reason to invest in a technology that’s neither stylish nor inexpensive. With gas prices in Europe exceeding $7.00 a gallon, diesel is an appealing option when every drop of fuel counts. If the US government didn’t impose such a high federal tax on diesel fuel and refineries were willing to sell diesel to the American market instead of Europe, where it is in strong demand, the cost difference between gasoline and diesel wouldn’t be as great. Regardless, economic considerations have pushed the diesel engine to the back burner in America for the time being. For the time being, it appears that the gas-powered engine will dominate the American vehicle market.

Are diesel cars hard to maintain?

One thing you may notice about a diesel car is that it requires far less maintenance than a gasoline vehicle. This is due to two factors. The first is that the diesel engine does not require spark plugs. These are a standard element of gasoline engine maintenance, and the diesel can avoid the garage if they are not there. Furthermore, due to higher engine efficiency and lower wear and tear on the engine, the car requires less maintenance overall than the gasoline counterpart. This means that buying a diesel engine is more cost effective if you drive more than to the grocery and back every day, because the higher maintenance costs are compensated by the lower demand for maintenance with a diesel automobile.

Are diesel cars going to be banned?

Nobody expects diesel to be officially outlawed, though some cities are likely to make the dirtiest types illegal. AdBlue and diesel particulate filters (DPF) are technologies that are designed to filter out soot particulates and nitrogen oxides (NOx) emissions, which have been related to health problems.

What happens to diesel cars after 10 years?

Diesel automobiles that reach ten years of age after January 2022 would be deregistered, making them unlawful to drive on Delhi roads.

The Delhi government will issue a NOC allowing such diesel automobiles to operate in other states, provided that the state in question does not have a similar rule.

There will be no NOC for petrol and diesel cars older than 15 years, and they will be scrapped immediately.

Those that want to keep their vintage cars can convert them to electric vehicles.

In compliance with the National Green Tribunal (NGT), the Delhi administration has announced that diesel cars older than ten years will be deregistered beginning in January 2022. This comes in the wake of alarmingly high levels of pollution in the NCR.

There is, however, a catch to this. While the automobiles will be deregistered, a NOC letter will be issued allowing them to be driven in other states, provided that the other state does not have similar laws. For example, if you have a Delhi-registered 10-year-old diesel car, you can drive it in Maharashtra, Gujarat, or any other state where the deregistration law does not apply.

There will be no NOC offered for diesel and petrol cars older than 15 years, and the vehicle would have to be demolished. The Delhi government has ordered that all vehicles older than 15 years be demolished, regardless of whether they are petrol or diesel.

The Delhi government has proposed a remedy for owners of 10-year-old diesel and 15-year-old gasoline vehicles. With the installation of an EV kit, such cars can be converted to electric. The kits must be approved by the government, which is now in the process of doing so.

Until today, petrol and diesel cars older than 15 years and diesel cars older than 10 years had been allowed to drive on the roads if they passed fitness checks. Otherwise, they’d have to be scrapped. However, the government has issued this new and tougher order in response to increased car pollution.