Why is diesel more expensive than ulp in nsw australia?

Question

i do not understand why there is a difference in price, in europe on a recent holiday it was cheaper to buy diesel, it used to be here why is it now sometimes 15-20c/litre dearer??

its supposed to be better for the environment shouldn't the government be encouraging its use

Answer 1

Not just in NSW!

Price is going to be determined by the cost of production and simple demand (still not many diesel vehicles in metro areas of Australia compared to Europe)

Encouraging the use of diesel?  At the loss of all those taxes on ULP?