Why is Diesel Fuel More Expensive Than Gasoline?

Posted: April 24, 2023

Many factors determine diesel pricing

diesel services Greenville, ri The wild fluctuations in gasoline prices over the past year have been a major cause of concern for both consumers and businesses.

Despite its higher pricing, diesel pricing has remained relatively overlooked. Yet it is an essential element of our economy as fleets that transport goods to stores rely on it and countless industries – such as agriculture, manufacturing, and construction – utilize it in their equipment. Municipalities rely heavily on diesel fuel to power their vehicles and equipment, ranging from school buses to snowplows. Our own propane and heating oil delivery trucks are powered by diesel.

If your business relies on diesel fuels, you are likely feeling the strain of high diesel prices. While increased costs aren’t ideal, there’s no getting around the day-to-day expense of using diesel fuel.

Let Vaughn Oil’s superior diesel fuel services help you rein in your business’ expenses. Our on-road and off-road diesel solutions are the perfect answer to managing your costs!

What impacts diesel fuel prices?

Production costs. Starting in 2006, the Environmental Protection Agency (EPA) began introducing progressively stricter sulfur regulations for diesel fuel to minimize emissions. This phase-in was finished by 2014. The new standards dictate that all diesel fuel has a sulfur content of no more than 15 parts per million, significantly less than the 5,000 ppm prior to 2006. While this alteration is incredibly beneficial for air quality and our environment, it has also had an effect on refining costs for diesel.

Demand. Diesel is a necessary fuel source for many different industries, from transportation to construction and beyond. Unfortunately, only 11 to 12 gallons of diesel can be produced from one barrel of crude oil – far less than the 19 to 20 gallon yield you get when producing gasoline. Nonetheless, demand for diesel continues to remain consistently high across all sectors.

Taxes. With a federal excise tax of 18.4 cents per gallon for gasoline and 24.4 cents for diesel fuel, it’s clear that the taxes on diesel are significantly higher than those imposed on gasoline fuel across the United States. Additionally, several states have their own diesel fuel taxes.

Our diesel fuels services

If you have a fleet of vehicles and equipment powered by diesel, then you understand the significance it holds in your budget. To make sure that all jobs can be successfully completed, there is no room for poor quality or unreliable diesel fuel delivery and service.

While Vaughn Oil is unable to affect production costs, taxes, and diesel demand that shape pricing – our cost-effective diesel fuels services can provide your business with the efficiency and productivity it needs to grow. Ultimately this will improve your bottom line.

Our partnerships are extremely valuable to us; therefore, we always guarantee more than just competitive prices. We aim to provide real value for our commercial customers. We offer bulk diesel fuel delivery straight to your business premises or job site with zero hassle.

As a local business, we take pride in offering personal and prompt diesel fuel services that cannot be found with larger national firms. If you ever require an emergency delivery to keep up with demand or just need to adjust your delivery timetable, you can count on us for swift service.

If you’re looking for a diesel fuels partner you can trust, contact Vaughn Oil today to learn more about our diesel services!