# U.S. Diesel Prices Stand $1.85 Above Gasoline as Supplies Tighten

By Enna Lee

Canonical URL: https://www.tokenpost.com/news/investing/32526
Published: 2026-10-15T13:25:42.000Z
Updated: 2026-10-15T13:25:42.000Z
Section: Investing

> U.S. distillate production is at its highest level since 2019, but inventories remain 13% below the five-year seasonal average.

U.S. motorists faced a $1.848-per-gallon gap between diesel and regular gasoline in the week dated Oct. 12, as tight global distillate supplies compounded the fuel’s usual cost premium.

The national weekly average for on-highway diesel was $6.179 per gallon, while regular gasoline averaged $4.331. The difference rounds to $1.85 per gallon.

Diesel has generally cost more than regular gasoline almost continuously since September 2004. The premium reflects production costs tied to the shift to lower-sulfur diesel, global demand for distillates and higher federal fuel taxes. In January 2026, federal taxes and fees were 24.40 cents per gallon for diesel and 18.40 cents for gasoline, a difference of 6 cents.

That tax gap is small compared with the latest price spread. Global distillate supplies have tightened amid reduced refining activity in Russia, China and the Middle East. From January through August, U.S. refineries produced an average of 5.1 million barrels of distillates a day, the most since 2019. Stocks for the week ended Sept. 11 were 15.8 million barrels, or 13%, below the five-year seasonal average.

Refineries cannot quickly shift their output to make substantially more diesel. Refineries typically get 19 to 20 gallons of gasoline from a 42-gallon crude barrel, alongside 11 to 13 gallons of ultra-low-sulfur distillate. Most of that distillate is sold as diesel. Yields vary, and the ability to change the mix is limited.

Heating-oil demand can also affect diesel prices because both are distillate fuels. Pump prices additionally reflect crude oil, refinery processing, distribution, retail costs and taxes, whose shares vary over time and by region. A weekly diesel average reached $6.29 per gallon on Sept. 14, then the highest nominal level in the price series dating to 1994.