Why are diesel fuel prices higher than gasoline prices?
On-highway diesel fuel prices have been higher than regular-grade gasoline prices, on a dollar-per-gallon basis, almost continuously since September 2004. This trend is a break from the previous historical pattern of diesel fuel prices that were lower than gasoline prices, except in cold winters when demand for heating oil pushed diesel fuel prices higher. Diesel fuel prices have been higher than regular gasoline prices in recent years for three reasons:
- Demand for diesel fuel and other distillate fuel oils has been relatively high, especially in Europe, China, India, and the United States.
- The transition to less polluting, lower-sulfur diesel fuels in the United States affected diesel fuel production and distribution costs.
- The federal excise tax for on-highway diesel fuel (24.40 cents per gallon) is 6 cents per gallon higher than the federal excise tax on gasoline.
Learn more:
Historical U.S. motor gasoline and diesel fuel price data
What do I pay for in a gallon of gasoline and diesel fuel?
What are the projections for U.S. gasoline and diesel fuel prices?
Energy Explained: Diesel Prices and Outlook
Average diesel retail price below gasoline price for first time in six years
This Week In Petroleum discusses petroleum markets. The May 20, 2009 and March 26, 2008 editions discuss this FAQ topic in more detail.
Other FAQs about Diesel
- Why are diesel fuel prices higher than gasoline prices?
- How much tax do we pay on a gallon of gasoline and on a gallon of diesel fuel?
- Does EIA publish inflation-adjusted gasoline and diesel fuel prices?
- When was the last refinery built in the United States?
- Does EIA publish off-road diesel fuel prices?
- What do I pay for in a gallon of gasoline and diesel fuel?
- How do I calculate diesel fuel surcharges?
- What are the projections for U.S. gasoline and diesel fuel prices?
- How many gallons of gasoline and diesel fuel are made from one barrel of oil?
- Does EIA project energy production, consumption, or prices for individual states?
- How much carbon dioxide is produced from U.S. gasoline and diesel fuel consumption?
- How much biomass-based liquid fuels are produced, imported, exported, and consumed in the United States?
- How do we calculate product supplied?