- Diesel has been priced above regular gasoline in every year since at least 1995—the annual EIA data shows no era where diesel was cheaper at retail.
- The diesel premium has grown substantially over time, from about $0.26 per gallon in the mid-1990s to $1.11 per gallon in 2024, with the steepest climb since 2012.
- The federal diesel tax is $0.244 per gallon versus $0.184 for gasoline—a $0.06 difference that accounts for part, but not most, of the spread.
- Diesel prices hit an all-time high of $5.81 per gallon in June 2022, driven by refining constraints and global demand.
01 25-Year Price History
Diesel has cost more than regular gasoline at the pump in every year since at least 1995, with the premium widening from about $0.26 per gallon in the mid-1990s to $1.11 per gallon in 2024. The U.S. Energy Information Administration has tracked weekly retail diesel prices since 1994. Over these three decades, diesel has followed the same broad cycles as gasoline—tied to crude oil markets—but with its own distinct pricing dynamics. The table below shows annual average diesel prices at key points in the historical record.
EIA, Weekly Retail On-Highway Diesel Prices, U.S. average, 1994–2025| Year | Avg Diesel ($/gal) | Avg Gasoline ($/gal) | Diesel Premium |
|---|---|---|---|
| 1995 | $1.37 | $1.11 | +$0.26 |
| 2000 | $1.74 | $1.48 | +$0.26 |
| 2004 | $2.12 | $1.85 | +$0.27 |
| 2005 | $2.53 | $2.27 | +$0.26 |
| 2008 | $3.55 | $3.25 | +$0.30 |
| 2012 | $4.02 | $3.62 | +$0.40 |
| 2016 | $2.71 | $2.14 | +$0.56 |
| 2020 | $2.98 | $2.17 | +$0.81 |
| 2022 | $5.02 | $3.95 | +$1.07 |
| 2024 | $4.42 | $3.30 | +$1.11 |
Contrary to a common assumption, diesel has not gone through a "used to be cheaper" era at the retail level—the annual EIA data shows a positive diesel premium in every sampled year back to 1995. What has changed is the size of that premium: it held fairly steady around $0.26–$0.30 per gallon through the 1990s and 2000s, then began climbing more steeply after 2012, reaching $1.11 per gallon by 2024.
EIA, Petroleum & Other Liquids annual retail price series, 1995–202402 The Diesel–Gasoline Spread
The diesel premium over gasoline has grown fairly steadily since 2012, rather than moving in sharp reversals. It climbed from about $0.40 per gallon in 2012 to $0.82 by 2019—even through the low-oil-price years of 2015–2016—then widened further in 2022, when refining bottlenecks pushed the diesel premium to over $1.00 per gallon, where it has remained since.
EIA, Petroleum & Other Liquids: Weekly Retail Diesel and Gasoline Prices, 2005–2025For diesel vehicle owners, this persistent premium means higher per-gallon costs. Diesel engines typically deliver 25–35% better fuel economy than comparable gasoline engines—which, at today's $1.11 per gallon premium (about 34% more than regular gasoline), roughly offsets the price difference on a cost-per-mile basis rather than clearly beating it. Whether diesel comes out ahead per mile now depends on where a given vehicle pair falls in that range.
DOE/EPA, fueleconomy.gov, "Diesel Vehicles": diesel fuel economy advantage ranges03 Tax Differences
Part of the diesel-over-gasoline premium is structural: diesel fuel is taxed at a higher rate at both the federal and state levels. The federal excise tax on diesel is $0.244 per gallon compared to $0.184 for gasoline—a difference of $0.06 per gallon that has been in place since the last federal fuel tax adjustment in 1993.
FHWA, Federal Highway Administration, Federal Motor Fuel Tax Rates (26 U.S.C. §4081)| Tax Component | Gasoline | Diesel | Difference |
|---|---|---|---|
| Federal excise tax | $0.184 | $0.244 | +$0.060 |
| Average state tax | $0.291 | $0.310 | +$0.019 |
| Average combined tax | $0.475 | $0.554 | +$0.079 |
At the state level, most states also tax diesel at a slightly higher rate than gasoline. The combined federal-plus-state tax difference averages about $0.08 per gallon, accounting for roughly 15–30% of the total diesel premium depending on market conditions.
FHWA, Highway Statistics Series, Table MF-121T: State Motor-Fuel Tax Rates04 What Drives Diesel Prices
According to the EIA, four primary factors determine diesel retail prices, largely the same as gasoline but weighted differently:
EIA, "Factors Affecting Diesel Prices," updated 2024- Crude oil cost (50–60% of retail price): Diesel is a middle-distillate product refined from crude oil. Global crude prices set the baseline for all petroleum fuels.
- Refining costs and margins (15–25%): Diesel competes for refining capacity with jet fuel and heating oil—all middle distillates. When heating oil demand surges in winter or jet fuel demand rises in summer travel season, diesel refining margins can spike.
- Distribution and marketing (8–12%): Diesel distribution networks overlap with but are distinct from gasoline, with fewer retail stations carrying diesel in some regions.
- Taxes (12–18%): Federal and state taxes as described above.
A key distinction from gasoline: diesel demand is heavily commercial and industrial. Freight trucks, construction equipment, agricultural machinery, and marine vessels all consume diesel. This means diesel prices respond to economic activity and global trade volumes, not just passenger vehicle driving patterns.
EIA, Short-Term Energy Outlook, diesel consumption by sector; DOE, Transportation Energy Data BookEstimate your vehicle's driving cost using official EPA fuel economy data.
Use the Calculator05 Recent Trends
After the extreme price spikes of 2022, diesel prices have moderated somewhat but remain well above pre-pandemic levels. The national average diesel price stood at approximately $4.42 per gallon in 2024, about $1.11 above regular gasoline—among the widest premiums in the 30-year record.
EIA, Petroleum & Other Liquids, U.S. No 2 Diesel Retail Prices, annual average, 2024Several structural factors suggest the diesel premium will persist. Global demand for middle distillates continues to grow, particularly in developing economies. U.S. refining capacity for diesel has not expanded significantly, and ultra-low sulfur diesel (ULSD) requirements add processing costs that did not exist before 2006.
EIA, Annual Energy Outlook 2024; EPA, Ultra Low Sulfur Diesel regulation (40 CFR Part 80)For consumers choosing between diesel and gasoline vehicles, the per-gallon price difference is only part of the equation. The fuel economy advantage of diesel engines means that total fuel cost per mile often favors diesel in larger vehicles like trucks and SUVs, even at a higher per-gallon price. The EIA and DOE recommend comparing cost per mile rather than cost per gallon when evaluating diesel versus gasoline.
DOE/EPA, fueleconomy.gov, "Diesel Vehicles"; EIA, cost-per-mile comparison methodology06 Data Sources
- EIA: Weekly Retail Gasoline and Diesel Prices, 1994–2025. eia.gov
- EIA: "Factors Affecting Diesel Prices." eia.gov
- FHWA: Federal Motor Fuel Tax Rates; State Motor-Fuel Tax Rates. fhwa.dot.gov
- DOE/EPA: FuelEconomy.gov – "Diesel Vehicles." fueleconomy.gov