Until several years ago, the average price of diesel fuel was actually lower than the average price of gasoline. In some winters, when the demand for distillate heating oil was high, the price of diesel fuel rose above the gasoline price. Since September 2004, the price of diesel fuel has been generally higher than regular gasoline year round.
So why are diesel fuel prices higher than gasoline prices?
First, worldwide demand for diesel and other distillate fuels has been increasing steadily, with strong demand in China, Europe and the U.S., putting more pressure on the tight global refining capacity. The transition to low-sulfur diesel fuel has affected diesel fuel production and distribution costs. Furthermore, the federal excise tax on diesel fuel is $0.06 higher per gallon than the tax on gasoline.
At Supply Chain Services, we gather fuel surcharge data from the U.S. Energy Information Administration on a weekly basis to calculate our fuel surcharge for the following week.
Learn more on the U.S. Energy Information Administration website. www.eia.gov