You’re standing at the pump, staring at the numbers. It feels like a glitch in the matrix. For decades, diesel was the "cheap" alternative—the gritty, reliable fuel for the working class and long-haulers. Now? It’s consistently punching higher than unleaded. If you've ever wondered why is diesel more expensive than petrol, you aren't alone. It’s a mess of taxes, global wars, and the literal way we "cook" crude oil.
It’s frustrating.
Most people think it’s just corporate greed. While that’s always a fun villain, the reality is way more technical. It involves everything from the sulfur content in ship fuel to the heating habits of people in Germany.
The Chemistry Problem: You Can't Just Make More
Here is the thing about a barrel of oil. You don't just "choose" to make diesel or petrol. It’s like baking a loaf of bread; you get the crust and the soft middle whether you like it or not. When refineries distill crude oil, they get a set percentage of different products.
A standard 42-gallon barrel of crude typically yields about 19 to 20 gallons of petrol. But you only get about 11 to 12 gallons of distillate, which is what becomes diesel and heating oil. You can’t just flip a switch and turn the petrol into diesel. We are stuck with the ratios the Earth gave us. Because we produce less diesel per barrel than petrol, the supply is naturally tighter.
The Winter Spike
Diesel and home heating oil are basically cousins. They are both distillates. When a cold snap hits the Northeast US or Central Europe, demand for heating oil rockets. Refineries shift their focus. This creates a massive supply squeeze for the trucks on the road. If it’s a long winter, expect to pay more at the pump. It’s that simple.
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Why is diesel more expensive than petrol right now? The Russia Factor
We have to talk about Russia. Before 2022, Europe was obsessed with Russian vacuum gas oil (VGO). This is a semi-refined product that is perfect for making diesel. When the sanctions hit and the supply chains broke, Europe had to look elsewhere.
They started outbidding everyone else for diesel from the Middle East and the US.
Global markets are connected. When a guy in Berlin needs diesel and is willing to pay a premium because his usual Russian source is cut off, the price in Texas or London goes up too. Fuel is a global commodity. You’re competing with the entire world every time you lift that nozzle.
The "Green" Tax on Your Wallet
Diesel used to be "dirty." It smelled like sulfur and left black soot on everything. To fix this, governments around the world mandated Ultra-Low Sulfur Diesel (ULSD).
- It’s better for the lungs.
- It’s better for the environment.
- It’s much more expensive to make.
Removing that sulfur requires extra processing steps and expensive hydrotreating equipment. Those costs don't just disappear. The refinery passes them to the distributor, who passes them to the station, who passes them to you.
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Then there is the tax man. In many regions, diesel is taxed at a higher rate than petrol. Why? Because diesel vehicles are heavier and do more damage to the roads. Governments view diesel as a commercial fuel. They figure if you're running a business, you can eat the cost. Unfortunately, that "business" cost eventually shows up in the price of your milk and Amazon packages.
The Shipping Industry Stole Your Fuel
In 2020, a regulation called IMO 2020 changed everything for the shipping industry. Massive cargo ships were told they could no longer burn high-sulfur "bunker fuel." They had to switch to cleaner stuff.
What did they switch to? Basically, a version of diesel.
Suddenly, the shipping industry—the backbone of global trade—was competing with your Ford F-250 for the same slice of the oil barrel. When huge tankers are buying up millions of gallons of distillate to cross the Atlantic, the price for the average driver is going to climb.
Refineries are Dying Out
We haven't built a major new refinery in the United States since the 1970s. We've expanded existing ones, sure, but the total capacity is struggling to keep up. Refineries are also shifting. Many are being converted to produce "renewable diesel" made from fats and oils. While that’s great for the carbon footprint, the transition period creates hiccups in the supply of traditional petroleum diesel.
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Low supply + High demand = Pain.
A Quick Reality Check
- Petrol demand is somewhat elastic. If prices get too high, people go on fewer road trips.
- Diesel demand is inelastic. Trucks have to deliver food. Trains have to move coal. Ships have to move iPhones.
Because the world needs diesel to function, suppliers know they can keep prices high without the demand dropping off a cliff. It’s a captive market.
What You Can Actually Do About It
You can't control the war in Ukraine or the refinery capacity in Louisiana. But you can stop wasting money.
- Monitor the Spread: Use apps like GasBuddy. Sometimes the price difference between two stations just three miles apart can be as much as 40 cents. Diesel prices vary wildly because some stations cater to high-volume truckers while others just have one lonely diesel pump for cars.
- Weight is the Enemy: If you drive a diesel car or truck, stop hauling junk in the bed. Diesel engines are efficient, but they work hard. Every extra 100 pounds kills your MPG faster than you’d think.
- Check Your Tires: It sounds like something your dad would nag you about, but rolling resistance is real. Under-inflated tires on a heavy diesel vehicle drag the engine down, making that expensive fuel vanish even faster.
- Loyalty Programs: If you’re a high-mileage driver, the commercial fuel cards (like TSD Logistics or specialized fleet cards) can save you significantly more than standard consumer "rewards" cards.
The gap between petrol and diesel isn't closing anytime soon. As long as the world relies on heavy industry and global shipping, the "distillate" portion of the oil barrel will remain the most precious—and the most expensive. Understanding the "why" doesn't make the bill any smaller, but it helps you realize that it isn't just a random number on a sign. It's the price of a world that runs on heavy machinery.
To minimize the impact on your wallet, focus on aerodynamic efficiency and route planning. Avoid idling—diesel engines gulp fuel even when standing still. If you’re looking at buying a new vehicle, calculate the "break-even" point. With diesel prices where they are, you may need to drive over 150,000 miles before the fuel efficiency of a diesel engine actually pays for its higher upfront cost and pricier fuel.