Why Is Diesel More Expensive Than Gasoline? The Answer May Surprise You!
Diesel is actually less refined than gasoline, so why does it usually cost more? The answer has less to do with refining and more to do with demand, regulations, and keeping America's trucks and equipment running.
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Diesel fuel is generally less refined than gasoline, yet it usually costs more at the pump. That seems backward until you understand how diesel is produced and used.
Diesel comes from the heavier portions of a barrel of crude oil and traditionally required less refining than gasoline. Today, nearly all highway diesel sold in North America is Ultra-Low Sulfur Diesel (ULSD). Removing almost all of the sulfur requires additional refining and stricter quality controls, increasing production costs.
Demand is another major factor. While gasoline is used primarily by passenger vehicles, diesel powers semi-trucks, farm machinery, construction equipment, freight trains, generators, marine vessels, and many pickup trucks. Strong commercial demand often keeps diesel prices higher.
Seasonality also plays a role. Diesel and home heating oil are very similar fuels, so during colder months refineries often shift production toward heating oil, reducing diesel supply and increasing prices.
Refineries also can't simply produce unlimited diesel. Every barrel of crude oil naturally yields a fixed mix of gasoline, diesel, jet fuel, lubricants, asphalt, and other petroleum products, making major production changes difficult and expensive.
The two most common grades are #2 Diesel, which provides the best fuel economy for everyday use, and #1 Diesel, which resists gelling in cold weather and is commonly blended into winter fuel. You'll also find red-dyed diesel, a tax-exempt fuel intended only for off-road equipment such as tractors, construction machinery, irrigation pumps, and generators.
Modern diesel engines also require Diesel Exhaust Fluid (DEF). DEF is injected into the exhaust system, not the fuel tank, where it helps convert harmful nitrogen oxide emissions into harmless nitrogen and water vapor.
Although diesel often costs more per gallon, diesel engines usually travel farther on each gallon thanks to their greater fuel efficiency and abundant low-speed torque, helping offset the higher fuel price.
Want to learn more about modern diesel technology? Watch our companion Hidden in Plain Sight episode, "What Is DEF (Diesel Exhaust Fluid) and Why Do Diesel Engines Need It?" You'll learn what DEF is, how it works, why it's never mixed with diesel fuel, and what happens if your vehicle runs out.
https://youtu.be/rZk-J3l1LjE
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