Two big reasons why diesel is more expensive compared to gasoline

Prices are sky high and little by little we are seeing how the price of diesel exceeds that of gasoline. We explain two great reasons why this is happening.

While the prices of gasoline have recently reached all-time highs, diesel-dependent drivers have also not seen much relief in the pump.

And it is precisely the latter who have seen how it currently costs them more money to fill their car than if it were gasoline.

At least on paper, the diesel is a distillate of Petroleum less refined than gasoline, so its production and, consequently, its price, should always be cheaper than gasoline. The problem of diesel prices has more to do with the laws of supply and demand than how it is manufactured.

However, we currently live with a rope around our necks, and we are seeing a continuous increase in oil prices, especially after the pandemic.. Even so, the price diesel has given the surprise compared to gasoline for two main reasons.

Reasons for the increase in the price of diesel compared to that of gasoline

1. The Russian veto is getting closer:

Here gasoline has breathed because the end of the high consumption season in the US has reduced European exports and circulates more then through the European Union. However, the problem now comes with the diesel and Russia.

“When the embargo comes into force, Europe will have to replace a large number of barrels of diesel that now arrive from Russia, either by increasing its own production, importing more barrels from countries like Saudi Arabia, India or the United States at a higher premium or a combination of both.” Esteban Moreno points out for the countryof Kpler, specialized in energy and raw materials.

In addition, with the imminent situation and the arrival of winter, many power plants are using this fuel instead of natural gasto prevent this from running out when it is most needed.

2. In Spain there are too many diesel cars:

This is a big problem that we need to solve. We are talking about a market penetration of 55%, when the rest of Europe remains at 40%. This consequently causes demand to exceed supply (630,000 barrels per day versus less than 500,000).

A little less than 10 years ago, the craze for diesel cars in Spain caused most of them to acquire one. However, we all know how polluting they are and in Spain, for example, 2017 was the year of changesince sales of gasoline vehicles exceeded those of diesel (51.1 and 48.3%), an important paradigm shift considering the country’s tradition.