Gasoline and diesel market in the U.S. - statistics & facts
Although the United States enjoys some of the lowest gasoline and diesel prices among high-income countries, with public transportation options often limited, disruptions to the gasoline and diesel market have immediate repercussions for millions of drivers across the country. As these conventional motor fuels are derived from petroleum, developments within the gasoline and diesel market are closely tied to the oil industry. Accordingly, gasoline and diesel prices are generally lower in oil-producing countries.
For 2024, crude oil prices and the gasoline and diesel market are likely to be impacted by a worsening conflict in the Middle East. However, drivers in the U.S. may feel less repercussions than residents in other high-income countries due to lower reliance on foreign trading.
U.S. drivers prefer gasoline
Transportation, and the road sector specifically, account for most of the world's petroleum demand. Gasoline and diesel make up roughly half of the world's petroleum product demand and are expected to remain the commodities with the highest demand throughout the next decades. In the U.S., gasoline is the motor fuel of choice for the majority of driver, with gasoline consumption nearly three times as high as diesel.Why gasoline and diesel prices vary
Gasoline usually comes with a lower price tag than diesel, with the difference between regular gas and diesel prices sometimes as high as one U.S. dollar per gallon. Crude oil is the greatest determinant of motor fuel prices. When crude oil prices go up, so does the price of gasoline and diesel. Accordingly, trends in oil product prices often mirror performances of major crude oil benchmarks. A breakdown of diesel prices by expense shows that refining also accounts for a notable share in end prices, which is due to the type of diesel sold today (ultra-low-sulfur diesel) requiring more refining than gasoline. Costs associated with distribution and taxes are other variables, which may result in retail prices varying greatly by state.For 2024, crude oil prices and the gasoline and diesel market are likely to be impacted by a worsening conflict in the Middle East. However, drivers in the U.S. may feel less repercussions than residents in other high-income countries due to lower reliance on foreign trading.
