ELI5, why does diesel cost so much more than petrol if it’s easier to refine from crude oil?

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ELI5, why does diesel cost so much more than petrol if it’s easier to refine from crude oil?

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Anonymous 0 Comments

In short, supply and demand. There are a lot more vehicles and parts of our infrastructure that run on diesel than you think. Semi trucks, freight trains (use diesel to make electricity), ships, heavy equipment, back up generators (power plants use them to produce more electricity when needed), Commercial grade pickup trucks, specialized trucks, municipal and DOT vehicles, school busses, etc.

Semi trucks have 125-300 gallon tanks, your average car these days usually carries no more than 30 gallons. When they buy diesel they buy it it much larger quantities. Your average gas station may have diesel available, but they mostly sell gasoline, so they have much larger 87 Gasoline storage tanks than the other varieties of gasoline and diesel.

If you’re a fleet operator and you have your own pumps in your yard for vehicles to fill up, you may not be paying as much.

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