Fact #512: March 31, 2008
Sales Price for Diesel and Gasoline, 1995-2007
Historically, the average price for diesel fuel was usually lower than the price of gasoline. Since 2004, that trend has reversed with diesel fuel prices now consistently higher than for regular gasoline. There are several reasons for this. Worldwide demand for diesel and distillate fuel oils has been increasing and that has put more pressure on tight global refining capacities to meet the demand for these fuel types. In the United States, the transition to Ultra Low Sulfur Diesel in 2006 has added to the distribution and production costs associated with diesel.
A comparison of monthly gasoline and diesel prices for 2007 indicates that the price of gasoline was actually higher than that of diesel for several months throughout the year. In 2008 the gap between the two prices has grown. March 2008 data show the price of diesel fuel to be 68 cents above the price of gasoline.
|Year||No. 2 Diesel||Gasoline (All Grades & Formulations)||Price Difference (Diesel - Gasoline)|
Source: Energy Information Administration.