ATLANTA — ATLANTA – Gas prices in Georgia are lower than they’ve been in almost three years, but if you’re vehicle depends on diesel, you’re not enjoying the trend.
Right now, the average price of regular unleaded gasoline is $2.09 a gallon, up slightly from the day before and 5-cents higher than a week ago. The average price of diesel is $2.94 a gallon.
Fewer vehicles use diesel. That’s part of the equation.
“There simply aren’t nearly as many diesel vehicles on the road, so retailers need to make decision on what fuels to carry,” says Jeff Lenard of the National Association of Convenience Stores. “If a high percentage of demand is for gas, retailers may not want to carry diesel. If there are fewer stations selling the fuel, retailers may not have to fight on price like they do for gas.”
But there’s still a demand for diesel that peaks in the fall and winter. The trucking industry needs it. Farmers need it for their equipment. Diesel is made from the same petroleum distillate used for heating oil.
“Diesel demand is robust,” says Patrick DeHaan of GasBuddy. “Stockpiles of gasoline are high. Diesel inventories are the opposite.”
Meanwhile, the demand for gasoline is lower in the winter.
“As demand drops in autumn and winter, so too do prices,” says AAA’s Garrett Townsend.
The materials needed to produce diesel is not as abundant, so refiners can’t produce as much. Plus, the federal excise tax on diesel is six cents a gallon higher than the tax on gasoline.
Despite all of that, in the warmer months when demand for gasoline increases, diesel can sometimes be cheaper. The last time that happened was 2015.
"Diesel may see a small drop in price in warmer months when it’s not used as heating oil,” says DeHaan. “Until then, expect diesel to continue at a noticeable premium to gasoline.”
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