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Why Diesel Prices Are Higher Than Gasoline

It’s a matter of taxes, production processes, and global demand

commercial fuel west virginia If you run a construction site, farm, landscaping business, vehicle fleet or other company that depends on diesel, you know what a crucial, and expensive, fuel it is.

Simply put, economies, both large and small, run on diesel. It powers trucks and buses, generators and off-road equipment. But why is it always so much more expensive than gasoline?

In 2022, both diesel and unleaded gas saw startling price surges. But while gas came down near the end of the year to close to where it was at the beginning, diesel prices remain stubbornly high.

In greater Martinsburg and throughout our service area, Roach Energy offers gasoline and diesel delivery for commercial customers. We can clarify how the two fuels are different — and why diesel is almost always more expensive.

How are diesel and gasoline different?

Although gasoline and diesel both originate from crude oil, the distillation process creates differences between them. Most notably:

Why is diesel more expensive than gasoline?

Believe it or not, there was a time when diesel cost less per gallon than gasoline. Those days are behind us now. Here are the three main factors that led to diesel prices becoming higher.

  1. Taxes. The federal motor fuel excise tax is 18.4 cents per gallon for gasoline. It’s 24.4 cents per gallon for on-road diesel. Many state taxes hit diesel much harder than gasoline.
  2. Refining costs. Beginning in 2006, the Environmental Protection Agency started to phase in regulations requiring all diesel to lower its sulfur content. Today, diesel contains only 15 parts per million of sulfur. This improves its performance and reduces its emissions significantly, but it leads to higher production costs.
  3. Supply and demand. As we mentioned earlier, countless commercial ventures need diesel, including tractors, trains, trucks, forklifts and construction equipment. There is no seasonal decline in diesel demand, but one barrel of crude oil only yields about 11-12 gallons of diesel. For comparison, a barrel of crude can produce 19-20 gallons of gasoline.

Roach Energy is your Eastern Panhandle commercial fuel partner!

Construction companies, farms, landscapers, construction and trucking — they all count on Roach Energy to meet their fueling needs. We offer on-site delivery of both on-road and off-road diesel, plus gasoline. While there’s little we can do to mitigate the national and global factors that affect diesel prices, we can lower your fueling time and simplify the process, which can significantly improve your business’s productivity.

If you want to get started with a customized diesel delivery plan, contact the Roach Energy team.