Why is Diesel More Expensive Than Gasoline?

[Keith Browning]

I was asked this question by someone who assumed that since diesel is "less refined" it certainly must cost less. Right?

 

No.

There are four prominent reasons diesel fuel is more expensive than gasoline.

• First, diesel is a seasonal fuel requiring different blends to compensate for varying climate conditions: temperature. This added processing and the addition of other distillates raises the cost of production.
• Second, demand is very high for diesel fuel globally and in the U.S. and it continues to rise while the demand for gasoline is declining. Adding to that, a barrel of oil produces about twice as much gasoline than it does diesel.
• Third, the requirement for Ultra Low Sulfur Diesel (ULSD) for use in model year 2007 and later vehicles, which are equipped with advanced emissions control systems. ULSD required billions of dollars in upgrades to the refining, storage and distribution of diesel fuel. The additional processing the fuel to remove sulfur from the fuel also adds to the cost of the fuel.
• Fourth is taxes. Diesel fuel caries a heavier tax burden than gasoline in the U.S. and while this is not the biggest factor in the difference between the pricing of the two fuels it is a factor.

 

 

[Brad Clayton]

And let's not forget reason number 5 and the most important one of all.............cause we'll pay for it and continue to at any price. I believe diesel is just shy of 9 dollars a gallon in Norway.

[Bruce Amacker]

The cost of processing the ULSD is the primary reason in my view, and yes, gas and diesel both average nearly double what we pay in Europe.

 

The swinging difference in the price of diesel vs the price of gas is what mystifies me.  It's $.10 different right now here but commonly is a dollar. What gives?

 

[Aaron]

I bought diesel for $4.02 a gallon in port Huron on Saturday. It's 1.339 a liter here.

 

Using a US gallon conversion, that's $5.07 a gallon Canadian. Even taking into consideration the exchange rate I still come out ahead.

[mchan68]

I just filled up truck today at 1.29/L for diesel at a station where it was 1.38/L for regular unleaded (87).

[DieselD]

its about $3.60-$3.80ish here currently. Its not terrible but still unacceptable IMO. I never understood the swing in price either and any little weather hiccup and its through the roof again for the next 6 months and then never returns to the rate it was  before whatever raised it.

 

Gasoline is only slightly cheaper, Actually I think 91 is a bit higher then diesel actually. I try not to look too hard when filling up the raptor on 91 though.

[Matt Saunoras]

I believe I paid around 4.25/gallon yesterday. Truck took 33 gallons