Why Does Diesel Cost More Than Gasoline?

There isn’t only one reason why you pay more for diesel

cost of diesel Allegany, ny The roller coaster that is gasoline pricing in the past year has gotten a lot of attention.

Diesel pricing, on the other hand, has not even though it is much more expensive than gasoline and is a vital part of our economy as it fuels the fleets that bring goods to our stores and is used for equipment in a wide range of industries including agriculture, manufacturing, and construction. Municipalities rely on diesel fuels for school buses, snow plows, and other vehicles and equipment. Our propane and heating oil delivery trucks run on diesel.

If your business uses diesel fuels, these high prices are an aggravation. No one wants to raise prices, yet the day-to-day costs associated with diesel can’t be ignored.

Rinker Oil & Propane’s off-road diesel and on-road diesel fuel services can help you control your business’s diesel fuel costs.

Three factors that influence the price for diesel fuels

Production costs. Beginning in 2006, the Environmental Protection Agency phased in stricter standards for the amount of sulfur in diesel fuel to reduce harmful emissions. That phase-in was completed in 2014. These new standards mandate that all diesel fuel have a sulfur content no higher than 15 parts per million. Before 2006, diesel fuel had as much as 5,000 parts per million. Although this change is highly beneficial for air quality and the environment, it also increased the costs associated with refining diesel.

Demand. Unlike other fuel sources, the need for diesel remains consistently high. From trucks to trains and from construction machinery to container ships – all of these require a steady supply of diesel fuel. Unfortunately, one barrel of crude oil can only produce 11 to12 gallons of diesel fuel compared to 19 to 20 gallons of gasoline.

Taxes. Federal taxes on fuel are steeper for diesel than gasoline, with an excise tax of 18.4 cents per gallon for gasoline versus 24.4 cents for diesel fuels. Congruently, several states also impose a tax for diesel fuels as well.

Our diesel fuels services

If your business has a fleet of vehicles or equipment powered by diesel fuels, you know what a big part of your budget it can be. You also know that you need reliable diesel fuels delivery and service to get your work done.

While Rinker Oil & Propane can’t do much about the impact of production costs, taxes, and demand on diesel pricing, our diesel fuels services can help your business be more efficient and productive, which in turn boosts your bottom line.

Our business partnerships hold immense value to us, so we always make certain that we deliver more than just competitive prices. We strive to provide real benefit for our commercial customers.

We provide bulk diesel fuels delivery to your business, farm, or job site. You can also come to one of the many Valero gas stations/convenience stores in our service area, all of which supply Rinker’s on-road diesel at their pumps.

Because we are a locally based company, we can provide responsive, personal diesel fuels service that no big, national fuel company can offer. Whether you need an emergency delivery to meet demand, or need to adjust your delivery schedule, we’re on it right away.

Get the best diesel fuel services in the Southern Tier. Contact Rinker Oil & Propane today to learn more about what we can do for your business!