Diesel fuel prices have reached sky-high sums in recent years thanks to several factors, including the pandemic and Russia’s invasion of Ukraine.
There’s a bit more to the story, though. And while diesel prices remain high, experts predict those figures will decline this year and continue falling in 2024.
Why is diesel more expensive than gas?
Diesel is more expensive than gas because of regulations, taxes and the war in Ukraine.
The U.S. government taxes diesel at a higher rate than regular gasoline. Diesel fuel is subject to a tax of 24.3 cents per gallon, whereas regular gasoline’s tax is 18.3 cents per gallon, according to the U.S. Energy Information Administration, or EIA.
Diesel has also become more expensive because there has been demand for some of its components to be used in fuel for marine vessels.
In 2020, the International Maritime Organization tightened its fuel regulations for ships and other vessels. To meet those IMO requirements, shipping companies and other…
This article was written by Cara Smith and originally published on www.nerdwallet.com