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 M¢37  Funded By Mahalo ? |  September 23, 2009 10:38 AM

Why is diesel fuel more expensive than gasoline?

Does diesel fuel have higher production costs or are the government taxes higher?
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September 23, 2009 12:31 PM
Neither. Production costs are slightly lower and taxes slightly higher but not enough to account for the difference in price. Some states have higher additional state taxes on diesel (California, Washington) Although diesel prices fluctuate separately from gasoline prices and have sometimes been lower, the current prices are higher in the USA because of supply and demand. Building either a diesel or a gasoline refining plant is a big long term project so the supply only changes gradually.

Basically, the higher cost is due to a gradual increase in demand for diesel with more people trying to save fuel with the more efficient (and recently improved) diesel engines, especially in the larger pickup trucks. There has not been a matching increase in production.

It is unfortunate that there has not been more effort to encourage diesel as there has in Europe. Electric, fuel cell and other prospective technologies pretty clearly will not do the job for most transportation needs. Diesel engines can without modification be made completely green by using Biodiesel fuel, which is much more efficient to produce than ethanol. But biodiesel has also not gotten the support it should, again Europe is ahead of the USA. European countries give tax and other incentives to diesel and biodiesel because they are even more concerned about the effects of oil imports on their economies.

The current technology (but not currently offered by car manufacturers) that is the ideal long term solution for transportation is the plug-in electric hybrid diesel running on biodiesel. This combination would have more than sufficient range, great mileage, and be carbon neutral (if the rest of the chain was similarly powered). The only drawback is moderately increased initial cost of the car,
Source(s):
http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp
http://www.eia.doe.gov/bookshelf/brochures/diesel/index.html

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Tags: biodiesel, diesel

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Helpful: lobo7922

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September 23, 2009 11:30 AM
Actually here in Europe Diesel is Cheaper that gasoline. What is more expensive are the price tags of vehicles powered by Diesel engines, because they use less fuel per millage. Also, according to the experts diesel powered engines are more advanced technologically than gasoline cars and coupled with the fact that diesel cars are more economical and the engines life span is longer than that of gasoline, this is the reason why they are more expensive.

I am not sure if this is what you were looking for but I hope it helps.

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September 23, 2009 12:13 PM
Gasoline is rather cheaper than diesel fuel at pumps in the USA. Is it because gas engines in the States are for some reason better than diesel engines? For what I could see in the States, diesel is used mainly for commercial vehicles and not every gas station has a diesel pump.

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September 23, 2009 02:48 PM
Diesel fuel lasts longer and is not as high in demand. Most vehicles do not use desiel so they charge more for it since its not as popular. But it does last longer.

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