Why Is Diesel Fuel More Expensive Than Gasoline?

Understanding the Roles of Taxes, Production, and Demand

Often, we hear a lot about the rising and falling prices of gasoline. But, as pricy as gas is today, diesel fuel is typically even more expensive. And its diesel that fuels most of the fleets that deliver goods, or are used in manufacturing, farming and more.

For large vehicle fleets, farms, and other commercial ventures, the high price of diesel is an aggravating reality of life. No one wants to raise prices, but covering day-to-day costs adds up quickly and diesel has on-road and off-road uses that make it indispensable for many businesses. The trucks we use to deliver your propane and heating oil run on diesel fuel.

The Differences Between Diesel and Gasoline

To understand why diesel is generally priced higher than gasoline, it helps to understand how the two fuels are different.

Like gasoline, diesel is made from refined crude oil, but it’s less flammable and less volatile than gas, and delivers a lot more power. Diesel produces 10 to 20 percent more energy in combustion than gasoline, so diesel engines get more mileage per gallon of diesel than gas engines.

The distillation process separates the different hydrocarbons that compose either gasoline or diesel. Here are some other essential differences:

• Diesel is denser than gasoline. While gasoline will evaporate in the air, diesel will not.
• Diesel is combustible, requiring compression and heat to work. Gasoline is flammable, which means it only needs a spark.
• Regular “87” gasoline contains additives to aid its engine performance.
• Gasoline can break down much quicker than diesel.

What Makes Diesel More Expensive Per Gallon Than Gasoline?

There are three factors that contribute to diesel’s higher price point compared to gasoline:

1. Increasing production costs originating from a 2014 Environmental Protection Agency standard. This regulation requires all diesel to limit its sulfur to 15 parts per million. This lowered diesel emissions significantly, but it also raised the expense of refining it.
2. Higher taxes. The federal motor fuel excise tax is 18.4 cents per gallon for gasoline but 24.4 cents per gallon for diesel. States also impose higher taxes on diesel.
3. Demand is always higher for diesel. Freighters, tractors, trains, forklifts, construction equipment—they all need diesel to run, and that demand is steady. But one barrel of crude oil only produces about 11-12 gallons of diesel, compared to 19-20 for gasoline.

Jack F. Corse Fuels is the Local, Reliable Diesel Supplier You Can Trust!

When your business depends on every truckload of diesel fuel, that fuel is more than just a line item in your budget. You need a partner who will deliver true value at a fair price.

As a local, independent fuel company, we can’t do much to reverse the high taxes, refining costs, and demand driving up diesel prices—not to mention global conflicts, market speculation and OPEC cutting production. But we can help make your diesel fueling easier!

Our commercial and business partnerships are important to us, and that’s why Jack F. Corse Fuels strives to deliver real value that goes beyond competitive prices. Our friendly staff has fuel management expertise that takes the stress and guesswork out of commercial fuel deliveries. We’ve got the experience to understand your needs and help you plan, schedule, and manage your fuel deliveries.

We can also help you track your fuel usage to reduce waste and improve efficiency. And we can work with you to plan a fueling station at your business or job site. We’re always here to take your call. Contact us today to find out how we can make doing business easier for you.