Why Do Diesel Fuel Prices Go Up?

Understanding the Factors That Drive On-Road and Off-Road Diesel Costs

diesel fuel Business owners in Charles County and across Southern Maryland can attest that diesel is more than just a fuel — it’s a critical component to ensuring productivity. However, when diesel fuel prices surge, it could mean budget overruns and leaner margins.

Q-Dog Quality Discount Oil & Gas delivers diesel fuel for on-road and off-road purposes. We can help you understand the factors behind the seemingly erratic hikes in diesel fuel and offer clarity to your fuel budgeting.

And when you trust Q-Dog for your diesel delivery, you can rest easy knowing you’re receiving premium fuel at a competitive price, brought to you by the most dependable delivery team in the region.

Factor 1: Diesel’s Refining Process

The fuel refining process is how crude oil is converted into diesel fuel and other hydrocarbons like gasoline. Diesel is formed from heavier crude components and subsequently undergoes hydrotreating to remove sulfur, nitrogen and other undesirable parts of the fuel.

It’s worth noting that one barrel of crude oil only produces about 11-12 gallons of diesel, compared to 19-20 for gasoline.

Factor 2: Demand for Diesel Fuel

Economics 101 dictates that when demand outstrips supply, prices increase. Diesel demand is pretty much always high throughout the year. Vehicle fleets, including delivery vans, big rigs, buses and shuttles, all need diesel. So does off-road equipment on construction sites, farms and industrial facilities. Diesel is essential to run power generators in commercial and residential settings, too.

Supply disruptions in the crude oil market happen frequently. We’ve seen recently how a global pandemic, supply chain issues, global conflicts and OPEC production cuts have choked access to oil products, including diesel fuel. The result is price surges.

Factor 3: The Drive for Cleaner Diesel

Government regulations — particularly rules originating from a 2014 Environmental Protection Agency emissions standard — have caused the price of diesel to increase. These EPA regulations have limited the sulfur content of diesel to 15 parts per million. This ultra-low-sulfur diesel is much better for the environment and air quality. It’s also better for the health of equipment that burns it. However, these regulations have made the refining process more expensive.

Factor 4: Taxes and Fees

If you depend on un-dyed road diesel for your vehicles, you surely understand how much pricier it is than off-road diesel or gasoline. The reason for that is that on-road diesel is subject to a federal motor fuel excise tax that’s about six cents per gallon higher than the tax for gasoline — and not charged at all for off-road diesel. State taxes on diesel vary, but they can add up to 78 cents per gallon!

Q-Dog has you covered for diesel fuel delivery.

Throughout southern Maryland, businesses know they can trust Q-Dog for a fair price on their diesel fuel. We also have a delivery team that is second to none. Our drivers receive regular training and are certified for safe and efficient diesel fuel delivery. Q-Dog trucks are all equipped with a state-of-the-art digital dispatch system and GPS navigation to ensure your fuel arrives right when we say it will.

Are you on the lookout for competitively priced, top-quality diesel for your business? Look no further! Contact Q-Dog to order fuel today.