Horsepower is torque * rpm.
Through gearing you can get any torque you want from a given amount of horsepower.
Horsepower is the rate at which work can be done.
You can have torque with 0 horsepower, but you cannot have horsepower without torque.
A 20 hp engine with high torque (diesel), can perform exactly as much work as a 20 hp engine with lower torque (gas).
One reason why people will believe that a diesel is more powerful is that a diesel will lug, instead of stalling like a gas engine, it will continue to run down to a much lower rpm.
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