What Causes the Price of Diesel to Change?

Written on: August 21, 2023

Taxes, Production, and Demand All Play Roles in Higher Prices

When you need to fill up a fleet of heavy-duty trucks or construction vehicles, you notice every fluctuation in the price of diesel fuel. For large vehicle fleets, farms and other commercial ventures, the high price of diesel is an aggravating reality of life. Diesel has on-road and off-road uses that make it indispensable for many businesses. But the cost of fueling up can really hit your bottom line.

Why Does the Price of Diesel Keep Rising?

There are three factors that contribute to the price of diesel fuel:

1. Increasing production costs originating from a 2014 Environmental Protection Agency standard. This regulation requires all diesel to limit its sulfur to 15 parts per million. This lowered diesel emissions significantly, but it also raised the expense of refining it.
2. Higher taxes. The federal motor fuel excise tax is 18.4 cents per gallon for gasoline, but it’s 24.4 cents per gallon for diesel. States also impose higher taxes on diesel—and the state tax on diesel increased by about 1 cent per gallon here in Massachusetts. That’s a lot less than in other states, but those pennies add up with every fill-up.
3. Demand is always higher for diesel. Freighters, tractors, trains, forklifts, construction equipment — they all need diesel to run, and that demand is steady. But one barrel of crude oil only produces about 11-12 gallons of diesel, compared to 19-20 for gasoline.

Keeping Diesel Costs Manageable

As a local, independent fuel company, we can’t do much to reverse the high taxes, refining costs, and other factors that drive up diesel prices. But our commercial fleet fueling services can help you save time and money. Our wholesale pricing and bulk fuel discounts can help you can save money on the fuel you need to run your fleet. And on-site fueling keeps your fleets on the road and on the job—rather than filling up at the gas station. Because you’re ordering fuel in advance and not just filling up when tanks hit empty, you’ll be able to more accurately track your fuel usage to reduce waste. You’ll also have a detailed invoice instead of just gas station receipts.

Brideau Offers Reliable Diesel Delivery Solutions

Our commercial and business partnerships are important to us, and that’s why we strive to deliver real value that goes beyond competitive prices. Our friendly staff has fuel management expertise that takes the stress and guesswork out of commercial fuel deliveries. We’ve got the experience to understand your needs and help you plan, schedule and manage your fuel deliveries. We can also help you track your fuel usage to reduce waste and improve efficiency. And we can work with you to plan a fueling station at your business or job site.

We’re always here to take your call. Contact us today to find out how we can make doing business easier for you.