Why is Diesel Fuel More Expensive than Gasoline?

Historically, diesel fuel was usually cheaper than gasoline, with the exception of during the winter months when heating oil demand translated into higher diesel prices. However, diesel has been as expensive or more expensive than regular unleaded gasoline since September 2004 for a few reasons.

For one, international demand for diesel fuel and other distillate fuel oils has increased due to economic growth between 2002 and 2008, and global refining capacity has not quite been able to keep up with the high demand, according to the Energy Information Administration. In addition, “The transition to less polluting, lower-sulfur diesel fuels in the United States affected diesel fuel production and distribution costs.” Finally, the Federal excise tax for on-highway diesel fuel is 6 cents higher than the gasoline tax.

In some good news for truckers, the price of diesel has slowly been dropping across the country, albeit slowly. According to overdriveonline.com, the national average for the price of diesel was 16 cents lower at the end of September 2103 compared to September 2013. Diesel also saw a decline in price for 3 weeks in a row in September.

 

diesel fuel tax

 

Evan Transportation was founded in 1992 by Jerry Wolfarth, who at the time had over 25 years of experience in the trucking and transportation industry. The initial operation consisted of a few trucks and drivers who were dedicated and professional. The goal of the company was to provide excellent, dependable service.

If you need materials and products moved in the Mid-Atlantic region, contact Evan Transportation. We hire professional drivers with excellent driving records, and maintain a fleet of trailers and vehicles that are reliable and ready to roll.

Contact us today for all of your freight shipment needs or call us at 443-673-3365

Before you hit the road, check us out on FacebookTwitterGoogle+LinkedIn and YouTube!

 

Source

 

http://www.overdriveonline.com/diesel-price-continues-to-fall-nationally-down-16-cents-year-over-year/

 

http://www.eia.gov/tools/faqs/faq.cfm?id=9&t=5

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