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

162 views

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

In: 2

6 Answers

Anonymous 0 Comments

There is the supply side of the situation, how much it costs to produce. Then there is the demand side, how much gets used. Diesel has a lot of demand in industry. Trucks, freight trains, heating, manufacturing, farm equipment, etc.

They are able to sell all their diesel fuel at the price they’re putting in and they’re going to keep selling it that way.

Then in the US, gas taxes have not increased since 1993, but diesel has. State and local taxes might change this, but at the federal level It costs $0.06 more in taxes for diesel. 18 cents for gasoline and 24 cents for diesel

You are viewing 1 out of 6 answers, click here to view all answers.