Diesel Fuel Prices Exceed Gasoline Since 2004

Why it matters locally: Michigan's robust automotive and manufacturing sectors, heavily reliant on diesel for transportation and machinery, are directly impacted by sustained higher diesel fuel costs. This trend can affect supply chain expenses for businesses across the state.

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.