Why Is Diesel More Expensive Than Gas In Canada?

While it is true that fuel prices vary by region in Canada, diesel fuel is about 20% more expensive than gasoline on average.

Why is diesel more expensive than gas right now?

On a dollar-per-gallon basis, on-highway diesel fuel costs have been higher than regular-grade gasoline prices virtually continually since September 2004. This tendency contrasts with the prior historical pattern of diesel fuel prices being lower than gasoline prices, with the exception of harsh winters when demand for heating oil drove diesel fuel prices higher. Diesel fuel costs have been higher than conventional gasoline prices in recent years for three key reasons:

  • Diesel and other distillate fuel oils have seen strong demand, particularly in Europe, China, India, and the United States.
  • In the United States, the move to less polluting, lower-sulfur diesel fuels had an impact on diesel fuel production and distribution costs.
  • On-highway diesel fuel has a federal excise tax of 24.3 cents per gallon, which is 6 cents per gallon greater than gasoline.

This Week In Petroleum delves into the world of petroleum markets. This FAQ topic is covered in greater depth in the May 20, 2009 and March 26, 2008 editions.

Other FAQs about Diesel

  • Does the EIA provide state-by-state estimates or projections for energy output, consumption, and prices?
  • In the United States, how much biomass-based diesel fuel is produced, imported, exported, and consumed?
  • How much carbon dioxide is created by gasoline and diesel fuel consumption in the United States?
  • How much does a gallon of gasoline and a gallon of diesel fuel cost?

How much is diesel in Canada right now?

During that time period, the average value for Canada was 1.49 Canadian Dollar, with a low of 1.44 Canadian Dollar on 06-Dec-2021 and a high of 1.61 Canadian Dollar on 07-Feb-2022. For reference, the global average price of diesel for this time period is 2.00 Canadian Dollars.

Which is cheaper to maintain gas or diesel?

Diesel maintenance is less expensive in the long run since diesel engines have fewer problems than gasoline engines; nevertheless, diesels are more expensive to repair when they do. Depending on the sort of diesel car you have, maintenance will not be more expensive than for a gasoline-powered vehicle.

Is diesel or gas better for the environment?

Using diesel fuel minimizes dangerous CO2 emissions that contribute to global warming, according to recent science.

Engines that run on diesel are more efficient than those that run on gasoline. Even though diesel has a higher carbon content than gasoline, efficient diesel engines produce less carbon into the atmosphere.

The difference in CO2 emissions between diesel and gasoline was recently calculated by environmental scientists. In practice, this amounts to around 200g CO2/km for gasoline and 120g CO2/km for diesel. That’s a 40 percent difference!

Consider this: if every car ran on diesel, the world’s CO2 pollution would be reduced by 40%.

Why is diesel fuel so expensive?

The cost of diesel fuel is higher. Diesel fuel is subject to a higher federal excise tax than gasoline (24.4 cents per gallon vs. 18.4 cents per gallon for gasoline), and diesel fuel is occasionally subject to a higher state tax.

Is diesel easier to make than gasoline?

Diesel fuel is less volatile and heavier than gasoline, making it easier to refine from crude oil. As a result, diesel is generally less expensive than gasoline in most countries.

Is diesel worse for the environment?

When diesel fuel (refined from crude oil) is used, it emits a variety of hazardous emissions, and diesel-fueled vehicles are major emitters of pollutants like ground-level ozone and particulate matter. The US Environmental Protection Agency (EPA) created limits for the sulfur content of diesel fuel and emissions from new diesel engines to address this issue.

Is gas cheaper in Canada or USA?

For a multitude of factors, including taxes, gas in the United States is always cheaper than in Canada. Simply type in the location or city where you want to get rates. In Canada, gasoline is sold in litres. 3.79 litres = one US gallon