Market Intelligence

EIA Outlines Core Cost Components Behind Distillate and Diesel Pricing

Crude oil costs, refining margins, logistics, and supply tightness dictate distillate fuel oil prices, according to the US Energy Information Administration.

EIA Outlines Core Cost Components Behind Distillate and Diesel Pricing
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Distillate fuel oil pricing, commonly sold as diesel, is determined by a combination of foundational market factors. These include crude oil costs, crack spreads used as a measure for refining margins, distribution expenses, retail margins, and taxes.

Elevated crude feedstock costs alongside constrained worldwide distillate fuel oil availability have pushed prices upward in recent months.

The US Energy Information Administration highlights that refining margins, captured through crack spreads, remain a key indicator alongside logistics and retail factors in shaping final fuel costs.

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