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Diesel prices are shaped by crude oil, margins, and supply tightness
The EIA says tight global distillate supplies and higher crude oil prices have pushed diesel costs higher in recent months.
The U.S. Energy Information Administration (EIA) says diesel, which is often sold as distillate fuel oil, is priced based on several linked components.
According to the EIA, crude oil prices are a major driver, while retail margins, distribution costs, taxes, and crack spreads also affect what consumers ultimately pay. The agency highlights crack spreads as its indicator for refining margins.
The EIA also points to market conditions, saying tight global supplies of distillate fuel oil and elevated crude oil prices have driven diesel prices higher in recent months.
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