Diesel fuel has been selling at a premium to gasoline during the recent energy price shocks. On the chart, the world average diesel price exceeded the price of gasoline when the war in Ukraine began, as constrained supply of Russian diesel created a shortage first in Europe and then globally. Similarly, the onset of the Iran war in 2026 produced an increase in diesel prices relative to gasoline as flows of diesel from the Gulf almost stopped and also created global shortage.



Diesel and gasoline are both derivatives of crude oil, and their prices typically move together when oil price change. However, they are refined from somewhat different crude grades and at different locations around the world. Diesel yields are highest from the heavier, sourer crudes found in the Middle East, Russia, Canada and Latin America, while gasoline yields are highest from the lighter, sweeter crudes found predominantly in the U.S. shale basins, the North Sea and West Africa.

The U.S. produces a lot of diesel that Europe consumes, while Europe refines gasoline that the U.S. uses. The Gulf countries are important suppliers of diesel to Asia, and Russia, before the embargo, was an important supplier of diesel to Europe.

Demand also responds differently. Gasoline consumption can be cut back more easily in times of oil price shocks, whereas diesel is used in freight transport, agriculture and other industries, and its close substitute, heating oil, is used for heating.

These specifics mean that particular circumstances can break the comovement of gasoline and diesel prices. The recent energy price shocks have been such cases.

Note: The charts on this page will update automatically each month. You can re-visit the page to see trends.