(WSYR-TV) — You ask, we answer!
Scott Doody sent the Your Stories Team an email asking why a gallon of diesel so much higher than regular-grade gasoline?
According to AAA, the current price of diesel in the Syracuse market is $6.42 a gallon. A gallon for regular is $4.86.
A big reason diesel is skyrocketing is due to supply and demand. Patrick De Hann, head petroleum analyst for Gas Buddy, said the diesel inventory is near record low and demand is high because of the recovering economy.
Semi-trailers, trains and ships rely on diesel to move America.
De Hann said there’s not enough refining capacity to meet the growing demand. He said refining capacity has diminished. One of the problems has been the closure of a refinery in Philadelphia after an explosion at that plant in 2019.
According to the U.S. Energy Information Administration (EIA), the closure of the Philadelphia refinery decreased capacity on the east coast by approximately 100,000 barrels a day.
EIA reports diesel has costs more a gallon than regular-grade gasoline since 2004. Another reason it lists diesel as being more expensive is due to a higher federal excise tax.
Do you have a question about something happening in your neighborhood? Let the Your Stories Team know, and we will work to get you an answer!