SERVING YOU WITH ENERGY
Written on: May 27, 2025
When you need to fill up a fleet of heavy-duty trucks or construction vehicles, diesel fuel prices are a constant point of concern. While it’s easy to notice prices rising or falling at the pump, understanding the why behind these changes is more complex. Diesel prices are influenced by a combination of taxes, production costs, and market demand—factors that can shift quickly. Meanwhile, diesel has on-road and off-road uses that make it indispensable for many businesses. But the cost of fueling up can really hit your bottom line.
The federal motor fuel excise tax is 18.4 cents per gallon for gasoline, but it’s 24.4 cents per gallon for diesel. States also impose their own taxes, that are also higher on diesel. In Wisconsin, the total state taxes on diesel fuel amount to 32.9 cents per gallon, comprising two components: a motor vehicle fuel tax of 30.9 cents per gallon, and a petroleum inspection fee of 2 cents per gallon.
Diesel starts its life as crude oil, and fluctuations in crude oil prices directly impact diesel production costs. When global crude prices spike—due to geopolitical instability, natural disasters, or production cuts from major oil-exporting countries—the cost to refine and distribute diesel rises.
Diesel is also more energy-intensive to refine than gasoline, which means refining capacity plays a crucial role. If refineries are offline for maintenance or due to unexpected disruptions, supply tightens and prices typically go up. A 2014 Environmental Protection Agency standard requires all diesel to limit its sulfur to 15 parts per million. This lowered diesel emissions significantly, but it also raised the expense of refining it.
Finally, seasonal factors, such as the shift to winter blend fuels or hurricane season in the Gulf Coast, can also influence diesel supply and pricing.
Demand is always higher for diesel. Freighters, tractors, trains, forklifts, construction equipment all need diesel to run, and that demand is steady. But one barrel of crude oil only produces about 11-12 gallons of diesel, compared to 19-20 for gasoline. That keeps supply tight.
Of course during economic slowdowns or off-peak construction seasons, demand can dip and prices may fall—but your business may be slowing as well, along with your need for diesel.
As a local, independent fuel company, we can’t do much to lower taxes or refining costs, or control the other factors that drive up diesel prices. But Dale Gas & Oil’s commercial fleet fueling services team can help you save time and money. Our wholesale pricing and bulk fuel discounts can help you can save money on the fuel you need to run your fleet. And on-site fueling keeps your fleets on the road and on the job—rather than filling up at the gas station.
Our commercial and business partnerships are important to us, and we provide the same superb and attentive service to our commercial accounts as to our residential clients. We’re committed to delivering real value that goes beyond competitive prices.
Contact us for more information about commercial on- and off-road diesel fuel delivery now to become a customer today.