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3 Reasons Diesel is More Expensive Than Gasoline

Taxes, Production, and Demand Add Up at the Pump!

diesel prices portland, maine Often, we hear a lot of news about the fluctuating prices of gasoline. But, as pricy as gas is today, diesel fuel is 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, lumber, marine and fishing fleets, 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 same trucks we use to deliver your propane and heating oil run on diesel fuel!

What Causes Diesel Fuel to Be More Expensive?

There are three main 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. Demand is quite simply always higher for diesel fuel. Freighters, tractors, trains, forklifts, construction equipment—even container ships—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 gallons of gasoline.

What’s the Difference Between Gasoline and Diesel?

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:

For Local, Reliable Diesel Fleet Fueling Solutions…Call Pitstop Propane and Fuels!

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). However, we CAN help make your diesel fueling easier!

Our commercial and business partnerships are important to us, and that’s why we strive 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.