Death knell for diesel as price gap with petrol has never been wider

DIESEL cars are now less cost-effective to run than petrol, analysis has suggested as drivers are paying a record 24.5p more per litre.

The widening price gap means the average petrol car is now more costeffective despite not running as far per gallon, Telegraph analysis of government figures suggests.

On average a litre of petrol costs 164.4p at the pumps last week while the price of diesel was 188.9p, official data showed. This is the largest difference since records began in 2003.

Experts say the waning economic benefit will be the final nail in the coffin for diesel cars, which have become increasingly unpopular since the Volkswagen emissions scandal in 2015.

“In terms of new car sales, diesel is basically already just a niche vehicle,” said Stuart Masson, the editorial director of advisory service The Car Expert.

The fuel is “the first to fall” in the shift towards electric cars, he said.

It comes after Jeremy Hunt, the Chancellor, left the door open to a 23 per cent hike in his Autumn Statement last week, an increase that would add 12p to the cost of a litre of fuel, tipping diesel over the £2 mark.

Mr Hunt scrambled to reassure Conservative critics that the Government had yet to make a decision on the issue following a backlash led by Priti Patel.

In the past diesel has been recommended for people driving at least 12,000 miles annually – but with that mileage it would still be £62 more expensive at today’s prices.

Someone driving 8,000 miles a year would save £41 by driving a petrol rather than a diesel vehicle, The Telegraph’s analysis of government and Which? data shows.

Fuel economy figures are notoriously unreliable, as the testing is done in a laboratory under specific circumstances. Independent tests, by consumer watchdog Which? earlier this year, showed the average diesel car travels between 4 and 5.3 more miles per gallon than petrol vehicles. Even when accounting for drivers who overwhelmingly use motorways or drive out of town, where diesel cars are most cost-effective, savings have still diminished.

Government data suggests that petrol cars, on average, became cheaper to run from mid-october when the price gap surpassed 19p.

New diesel vehicles also tend to be more expensive than petrol vehicles, adding to the overall cost. However, total costs will depend on the model – and on individual driving habits.

Heightened prices will have knockon effects on the wider economy and could fan inflation, as it is the fuel most commonly used for HGV vehicles and farming.

Soon diesel will be used only by people in these industries, according to Mr Masson.

“It’s still going to be essential for people who are long-haul drivers and farmers but for your ordinary suburban consumer, diesel is pretty much now in the past,” he said.