Energy Guide

Why Is Diesel More Expensive Than Gas?

The lasting reasons diesel costs more than gasoline at US pumps, with the tax rates, refinery yields and 32 years of weekly EIA prices behind them.

Short answer. Diesel costs more than regular gasoline in the US for three lasting reasons that the Energy Information Administration (EIA) names: demand for diesel and other distillate fuels has been high in the US, Europe, China and India; the switch to ultra-low sulfur diesel raised the cost of making and distributing it; and the federal excise tax is 24.4 cents a gallon on diesel and 18.4 cents on gasoline. In EIA's weekly retail surveys, diesel was above regular gasoline in 1,106 of 1,158 (95.5%) from Sep 6, 2004 to Nov 9, 2026.

This week's diesel-gasoline gap

In the EIA survey of Nov 9, 2026, US retail diesel averaged $6.127 a gallon and regular gasoline $3.995: diesel cost $2.132 more. A year earlier (Nov 10, 2025) the gap was $0.781.

Source: EIA weekly retail prices, series EMD_EPD2D_PTE_NUS_DPG (No. 2 diesel) and EMM_EPMR_PTE_NUS_DPG (regular gasoline), US averages. EIA publishes a new survey each week and this block follows it. For prices by state and region, see diesel prices and gasoline prices.

How often diesel is above gasoline

We counted every week in which EIA published both US averages: 1,704 weekly surveys from Mar 21, 1994 to Nov 9, 2026. Diesel was above regular gasoline in 1,381 of them (81.0%). The two halves of the record look different. EIA dates the change to September 2004, so the table splits there.

EIA weekly surveysSurveysDiesel above gasolineShare
Mar 21, 1994 to Aug 30, 200454627550.4%
Sep 6, 2004 to Nov 9, 20261,1581,10695.5%
All surveys1,7041,38181.0%

Before September 2004, diesel was above gasoline in 275 of 546 surveys (50.4%). Since then it has been above in 1,106 of 1,158 (95.5%). The last survey with diesel at or below gasoline was Aug 24, 2015 ($2.561 against $2.637). Diesel has been higher in all 585 surveys from Aug 31, 2015 to Nov 9, 2026.

The widest gap in the series through Nov 9, 2026 is $2.139 on Nov 2, 2026. Before 2026 the widest was $1.607 on Nov 28, 2022.

US retail diesel minus regular gasoline, monthly average of EIA weekly surveys, April 1994 to October 2026. The gap sat near zero until September 2004, has been positive in most months since, and averaged $1.94 a gallon in October 2026.$0.00$0.50$1.00$1.5019952002200920162023Sep 2004Diesel premium $1.94
US retail diesel minus regular gasoline, dollars per gallon, monthly mean of EIA weekly surveys, Apr 1994 to Oct 2026. Zero means the same price. November 2026 is incomplete and left out. Source: EIA series EMD_EPD2D_PTE_NUS_DPG and EMM_EPMR_PTE_NUS_DPG, retrieved Nov 13, 2026.
The same data as a table: average gap by year, 1995 to 2025
YearAverage diesel minus gasoline, $/gal
1995−$0.002
1996$0.036
1997−$0.001
1998$0.014
1999−$0.015
2000$0.007
2001−$0.020
2002−$0.026
2003−$0.052
2004−$0.042
2005$0.131
2006$0.133
2007$0.089
2008$0.557
2009$0.115
2010$0.210
2011$0.319
2012$0.349
2013$0.417
2014$0.467
2015$0.277
2016$0.161
2017$0.235
2018$0.459
2019$0.452
2020$0.383
2021$0.279
2022$1.038
2023$0.695
2024$0.456
2025$0.563

Method: diesel is EIA's US No. 2 on-highway retail average and gasoline is the US regular, all formulations, retail average, both in dollars per gallon including taxes. “Above” means strictly higher; the one tie (Aug 14, 2000) counts as not above. Year and month figures are plain means of the weekly gaps in complete periods.

Reason 1: diesel is taxed more

The federal excise tax is 24.4 cents a gallon on diesel and 18.4 cents on gasoline, a difference of 6.0 cents (IRS Publication 510). Both figures include a 0.1 cent Leaking Underground Storage Tank fee. State taxes add to the difference on average: 35.50 cents on diesel and 33.27 cents on gasoline as of January 2026 (EIA). Tax explains cents of the gap. The rest comes from the fuel markets.

Reason 2: a barrel yields less diesel, and the world wants it

US refineries produce about 19 to 20 gallons of gasoline and 11 to 13 gallons of ultra-low sulfur distillate from a 42-gallon barrel of crude oil (EIA). Distillate is the refinery cut sold as diesel and, in several states, as heating oil. In 2025 the US refinery yield was 45.9% finished motor gasoline and 30.0% distillate (EIA refinery yield). The annual distillate yield stayed between 25.0% and 32.0% from 2005 to 2025.

Diesel and gasoline are then sold into separate markets. In 2025 the US used 3.91 million barrels a day of distillate and 8.94 million of gasoline, and it exported 1.25 million barrels a day of distillate while importing 0.16 million (EIA product supplied, EIA exports). US diesel therefore competes with buyers abroad. EIA lists high distillate demand in Europe, China, India and the United States as the first reason diesel has cost more than gasoline (EIA).

The refining margin on each product shows this before it reaches the pump. See the crack spread page for current diesel and gasoline margins, the crack spreads guide for how they are calculated, and refinery margins explained for the full product slate. The list of US oil refineries shows where that capacity is.

Reason 3: ultra-low sulfur diesel costs more to make

Before sulfur was regulated, diesel contained as much as 5,000 parts per million of sulfur. The Environmental Protection Agency began phasing in a limit of 15 parts per million in 2006. Highway diesel moved to ultra-low sulfur diesel (ULSD) from 2006 to 2010, and nonroad, locomotive and marine diesel followed from 2007 to 2014 (EPA). EIA says the transition affected diesel production and distribution costs (EIA). The diesel price page sets the retail average against New York Harbor wholesale ULSD.

Why the gap widens in winter

Heating oil and diesel are practically the same fuel and are produced at the same time, so heating demand in fall and winter puts pressure on diesel prices (EIA). About 4.59 million US households used heating oil as their main heating fuel in the winter of 2024-2025, 82% of them in the Northeast (EIA).

The weekly prices show the season. Averaged over 2007 through 2025, diesel's premium over regular gasoline was $0.569 in December and $0.251 in June.

MonthAverage diesel minus gasoline, 2007-2025, $/gal
January$0.496
February$0.461
March$0.408
April$0.338
May$0.281
June$0.251
July$0.286
August$0.313
September$0.361
October$0.455
November$0.529
December$0.569

Mean of EIA weekly gaps by calendar month, complete years 2007 to 2025. See the heating oil futures price.

Is there a diesel shortage?

US distillate stocks were 103.3 million barrels in the week ending Nov 6, 2026, 8.4% below the 112.8 million barrel average for the same week in 2021 through 2025 (EIA, WDISTUS1). A week earlier they were 99.3 million barrels, the first weekly reading under 100 million since May 2003; we covered that in US diesel stocks below 100 million barrels. The US fuel supply dashboard tracks the weekly figures.

This guide covers the reasons that hold year to year. For what moved diesel in late 2026, read why diesel is so expensive: the November 2026 fact check.

Frequently asked questions

Why is diesel more expensive than gas?

Diesel costs more than regular gasoline in the US for three lasting reasons that the Energy Information Administration (EIA) names: demand for diesel and other distillate fuels has been high in the US, Europe, China and India; the switch to ultra-low sulfur diesel raised the cost of making and distributing it; and the federal excise tax is 24.4 cents a gallon on diesel and 18.4 cents on gasoline. In EIA's weekly retail surveys, diesel was above regular gasoline in 1,106 of 1,158 (95.5%) from Sep 6, 2004 to Nov 9, 2026.

Why is diesel more expensive in the winter?

Diesel and heating oil are practically the same fuel and are produced at the same time, so fall and winter heating demand pulls on the same supply (EIA). In EIA's weekly surveys for 2007 through 2025, diesel's average premium over regular gasoline was widest in December ($0.569 a gallon) and narrowest in June ($0.251).

Will diesel ever be cheaper than gas?

It has been. Before September 2004, US retail diesel was above regular gasoline in 275 of 546 weekly EIA surveys (50.4%), about half the time. The last survey with diesel at or below gasoline was Aug 24, 2015; diesel has been higher in every survey from Aug 31, 2015 to Nov 9, 2026. This page makes no forecast.

Is diesel cheaper than gas in California?

No. In the EIA survey of Nov 9, 2026, California retail diesel averaged $7.897 a gallon and regular gasoline $5.562. In EIA's California series, diesel was above regular gasoline in 1,006 of 1,382 weekly surveys (72.8%) from May 22, 2000 to Nov 9, 2026. The last survey with California diesel at or below gasoline was Apr 15, 2024 ($5.256 against $5.271).

Why is diesel so expensive right now?

In the EIA survey of Nov 9, 2026, diesel cost $2.132 a gallon more than regular gasoline, against $0.781 a year earlier (Nov 10, 2025). The lasting reasons are on this page: tax, distillate demand, sulfur rules and season. What is moving the price in a given month is a news question; our dated article on diesel crack spreads and distillate stocks covers November 2026.

Is there a diesel shortage in the US?

US distillate stocks, which include diesel and heating oil, were 103.3 million barrels in the week ending Nov 6, 2026, 8.4% below the 112.8 million barrel average for the same week in 2021 through 2025 (EIA). A week earlier they were 99.3 million barrels, the first weekly reading under 100 million since May 2003. EIA notes that when stocks are low or falling, some wholesalers and marketers may bid higher for available supplies.

Use the numbers

Freight fuel surcharges are commonly set from the EIA weekly diesel average; the fuel surcharge calculator works one out. The weekly US diesel and regular gasoline averages on this page are in the API as DIESEL_RETAIL_USD and GASOLINE_RETAIL_USD; see the Diesel Price API and current plans.

Sources

Not investment advice. No forecast is made here.

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