LEXINGTON, Ky. — For today’s Good Question, John asks: Can you explain Why diesel is more expensive than Gas? Doesn’t gas cost more to manufacture than diesel?
There was a time when it was cheaper to manufacture diesel than gasoline, but that changed about 20 years ago.
Several factors have contributed to making diesel more expensive.
A requirement that diesel fuel in the United States be ultra-low sulfur diesel helped cut down on emissions and lowered pollution, but it also increased the manufacturing cost.
Diesel is heavily used in multiple industries that continue to expand, like trucking, shipping, agriculture and construction.
The federal excise tax for on-highway diesel fuel is 6 cents higher than the tax on gasoline.
The time of year can also play a role. Diesel and heating oil come from similar parts of the refining process. When demand for those products is high, diesel can rise.
Refineries in the United States can produce about 19 to 20 gallons of gasoline and 11 to 12 gallons of ultra-low sulfur diesel from one 42-gallon barrel of crude oil, according to the U.S. Energy Information Administration.
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