Diesel Fuel Prices Exceed Gasoline Since 2004

Why it matters locally: Wisconsin's significant agricultural and manufacturing sectors, which rely heavily on diesel-powered equipment and transportation, will experience direct impacts from these elevated fuel costs. Increased operating expenses for farmers and businesses could translate to higher prices for consumers.

Diesel fuel has consistently been more expensive than regular gasoline since 2004, with only occasional exceptions. This pricing trend marks a change from earlier periods when diesel typically cost less. Three primary factors account for this reversal: evolving air quality standards, shifts in market demand, and adjustments to taxation policies. Before 2004, diesel prices often fell below those of gasoline. The subsequent policy and market changes altered this long-standing relationship.