Why Is Diesel Fuel More Expensive Than Gasoline?

Taxes, Production, and Demand All Play Roles in Higher Prices

If the only motorized vehicle in your life is a standard passenger car, then you are likely only paying attention to the cost of unleaded gasoline. But, as pricy as gasoline is today, diesel fuel is even more expensive.

For large vehicle fleets, farms and other commercial ventures, the high price of diesel is an aggravating reality of life. Diesel has on-road and off-road uses that make it indispensable for many businesses.

But why is diesel generally priced higher than gasoline? To answer this, we first need to understand how the two fuels are different.

The Differences Between Diesel & Gasoline

Both gasoline and diesel are products derived from crude oil. The distillation process separates the different hydrocarbons that compose either gasoline or diesel. Here are some 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.
• Gasoline contains additives to aid its engine performance.
• Gasoline can break down much quicker than diesel.

Functionally, 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.

So Why is 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 by 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 does not wain. But one barrel of crude oil only produces about 11-12 gallons of diesel, compared to 19-20 for gasoline.

Dorr Oil and Propane Offers Local, Reliable Diesel Delivery Solutions

While there’s little that one individual fuel company can do to reverse the high taxes, refining costs, and demand driving up diesel prices (not to mention global conflicts, market speculation and OPEC cutting production) we CAN help make your diesel fueling easier!

Rather than losing work hours driving to the pump to pick up fuel, arrange on-site diesel delivery with Dorr Oil and Propane. In Barrington, Manchester, Stratton, and other communities in Southwestern Vermont, our diesel delivery team is trusted by companies, work sites, and farms alike. We also proudly provide diesel for generators at schools, hospitals, assisted living facilities, and other vital organizations.

Are you ready to arrange your next diesel delivery with the help of the Dorr team? Drop us a line today! We’ll give you a no-hassle quote to best fit your business’s distinct needs for this winter season and in the years still to come.