Why diesel is more expensive than regular gasoline
But there’s another big fuel on the gas station price chart, and its national average price currently dwarfs that of gasoline by more than a dollar a gallon: diesel fuel.
“Diesel is what powers trucking. It’s what powers our global economy,” said Joseph Sykora, equity analyst at Aptus Capital Advisors.
But diesel isn’t just crucial for trucking – it’s fundamental to international transportation as a whole because the engines of heavy vehicles like freight trucks, cargo planes and barges run on diesel. So, when shipping products across the country and around the world becomes more expensive, the prices of products transported by these transport vehicles also increase, worsening inflation.
There are three main reasons for the price gap: the transition to cleaner diesel blends, higher federal and state taxes, and diesel supply and demand.
The duty of diesel
Finally, the high price of diesel is attributed to the basic economic principle of supply and demand: insufficient supply, combined with barrels and barrels of demand.
Gasoline might power American cars, but because diesel fuels the American economy, its price also affects our daily lives.