Petrol or Diesel???

With diesel pump prices spiraling from an average of 135.5p in May 2011 to 148.5p per litre in Sept 2012, an increase of 9.59%, many fleet managers may be tempted to consider a switch back to petrol.

The factors worth considering are:
• Average pump price of unleaded is currently 7p less per litre than diesel.

• Manufacturers on the road prices and hence P11D values can be up to £2,000 more for a diesel over its exact petrol equivalent.

• No 3% Benefit in Kind surcharge for petrol cars.

• Fuel economy and emission level gaps between petrol and diesel are narrowing.

• Many drivers are planning their business and private journeys more ‘smartly’ and this is reflected in lower overall annual mileages making the diesel option less appealing.

• With the popularity of diesel cars, the leasing industry is conscious that the used vehicle market may be over supplied so are beginning to look at petrol residual values more favorably.

• All Euro 5 diesel engines must have a particulate filter that can cost up to £1000 to replace at 70,000 miles or less depending on driving history. Consequently, the leasing industry has to cater for this in setting maintenance budgets and residual values both of which have a negative impact on whole life costs.