Why is diesel so high

Learn More. Are you using a typical 2 diesel fuel in your personal truck to haul a camper or boat? Our premium diesel expert dives into the benefits of using a quality diesel fuel throughout spring, summer and fall to ensure your equipment is operating in top condition. Why is diesel fuel more expensive than gasoline? Taxes Taxes also factor into the higher costs for diesel fuel.

Seasonality Fuel oil used for heating homes is made from the same components as diesel fuel. Enhanced Additive Package Using premium diesel fuels, like Cenex Roadmaster XL , may cost a few cents more per gallon than using typical 2 diesel in the short-term.

During the fall and winter, the demand for heating oil affects diesel fuel prices. Because heating oil and diesel fuel are produced at the same time, seasonal increases in heating oil demand can also put pressure on the diesel fuel market.

In some regions, seasonal swings in farmers' demand for diesel fuel can influence diesel fuel prices. Transportation costs generally increase based on the distance between the retail location and the sources of supply. Areas farthest from the Gulf Coast, the source of about half of U. The retail price of diesel fuel also reflects local market conditions and factors such as the location and ownership of retail outlets. Refiners own and operate some retail outlets, while other retail outlets are independent businesses that purchase diesel fuel on the wholesale market.

The cost of doing business can vary greatly depending on where a dealer is located. Even retail stations near each other can have different traffic patterns, costs, and sources of supply. The number and location of local competitors can also affect prices. High-volume truck stops that cater to large commercial vehicles tend to sell diesel fuel at lower prices than smaller-volume service stations.

Diesel fuel prices on the West Coast, especially in California, are higher than in other regions of the country because of taxes and supply issues. As of July 1, , total state taxes on retail, on-highway diesel fuel in California totaled California is especially sensitive to West Coast supply conditions.

Unlike other U. Because of this relative isolation, it can be costly to transport supply from outside the region when a refinery outage occurs.

Diesel fuel explained Factors affecting diesel prices. What is energy? An example is the retail price of diesel fuel. What I don't understand is the fact that prices are so much higher than last year when distillate inventories are within the average range and are actually 3.

All the while, demand for distillates is down from 3. What gives? Jason, Chapel Hill, NC. For many years, diesel has been cheaper than gasoline at the pump -- which is why so many readers are puzzled by the recent flip-flop.

There's little difference in the cost of making the two fuels. But while the basic problem remains supply and demand, each of these fuels marches to a different market drummer. And there are a bunch of forces on each side of the supply-demand balance that have combined to make life miserable for diesel buyers. Meanwhile, diesel demand is still going strong. Despite higher prices, people seem to be finding a way to pay for diesel.

The economy remains relatively strong, so people are still buying lots of goods shipped by trucks. Diesel demand also goes up this time of year as farmers work their harvest equipment overtime to get their crops in. Demand for gasoline, on the other hand, has fallen -- as it always does this time of year when the summer driving season ends. UK diesel prices have reached a record high at the pumps a week after petrol prices hit their highest ever level, in a blow to hard-hit households and small businesses.

About The record pump price for diesel came one week after the average daily price for a litre of petrol reached a record