Seventy percent of the nation's goods are transported in diesel-powered vehicles, helping to make it America's primary commercial fuel.
Supply and Demand
Crude oil is the source of a number of important fuels, including gasoline, heating oil and diesel. Because these fuels all have the same starting point, refineries must decide what to produce when, based on a mix of supply and demand calculations.
What influences prices?
As with gasoline, the major components of diesel fuel prices are the cost of crude oil to refiners, federal and state taxes, and the cost to manufacture, distribute, and market the diesel fuel. Diesel prices generally reflect price trends for crude oil. Short-run factors that also affect prices include supply shortages resulting from refinery outages, transportation issues, adverse weather conditions, or pipeline problems. Diesel prices mirror crude oil prices, see .
How do taxes affect the price you pay for diesel?
The Impact of Taxes on Diesel Prices, for both state and federal are shown the Diesel Tax Map. To see the diesel fuel tax figures in greater detail, view Motor Fuel Taxes.
Diesel Fuel is getting cleaner: ULSD
Sulfur occurs naturally in crude oil and sulfur removal is an increasingly important part of the diesel refining process. Over the past decade, American refineries have cut diesel's sulfur content dramatically, yielding significant reductions in vehicle emissions. For more information about Ultra Low Sulfur Diesel (ULSD) fuel standards, implementation, and frequently asked questions about ULSD, visit .
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