How U.S. diesel prices are set
Crude oil, refining, distribution and taxes: the four pieces of every gallon, and which one moves the most.
This week: U.S. diesel averaged $6.127 in EIA's survey of Nov 9, 2026.
Every gallon of diesel at the pump carries four costs: the crude oil it was refined from, the refiner's margin, the cost of moving and selling it, and federal and state taxes. EIA publishes a monthly breakdown on its Gasoline and Diesel Fuel Update; the shares shift with the market, which is why the same tax can be a small slice in an expensive month and a large one in a cheap month.
Crude oil
Crude is usually the largest single component. Diesel follows global benchmarks such as Brent and WTI, but not one-for-one: refiners pay for crude by the barrel (42 gallons), so a $4.20 move in a barrel is roughly a 10¢ move per gallon before anything else changes.
Refining margin
The refining share is the difference between what a refiner pays for crude and what it earns for diesel. When distillate inventories are low, this margin (the "crack spread") can widen sharply and push retail diesel up even if crude is flat. Our diesel analytics page tracks a weekly crack spread from EIA spot prices.
Distribution and marketing
Pipelines, terminals, trucks and the station itself. This share is relatively stable in cents per gallon, and is the main reason prices differ between nearby regions.
Taxes
The federal excise tax on diesel is 24.4¢ a gallon (18.4¢ for gasoline). States add their own excise and sometimes sales taxes, so the same wholesale fuel can retail at very different prices across state lines.
Why diesel moves differently from gasoline
Diesel shares the distillate pool with heating oil and jet fuel, and it is the fuel of freight, farming and construction. Winter heating demand and tight global distillate supply can lift diesel while gasoline falls. Compare the two on the diesel and gasoline pages.