The final price paid for distillate fuel oil, commonly known as diesel, is shaped by several fundamental elements. These include the cost of crude oil, the margins applied at retail, expenses related to distribution, and various taxes.
Refining margins, specifically indicated by crack spreads, also play a significant role in setting the price point for diesel. These spreads reflect the profit refiners make from converting crude oil into refined products.
According to analysis from the U.S. Energy Information Administration, recent months have seen an increase in diesel prices. This upward trend has been primarily attributed to restricted global availability of distillate fuel oil and higher crude oil costs.