Wyoming Diesel Prices Are High, But Slightly Below Average

Gas and diesel prices are high across the nation. Here in Wyoming, our diesel prices are just a little below the national average. Just a little, not much.

The national average price for a gallon of diesel fuel in the U.S. is $6.23. The average price for a gallon of diesel in Wyoming is about $5.75, according to live data from AAA Fuel Prices.

The opposite is true for gasoline. Wyoming gasoline is just above the national average at $4.46 per gallon, according to AAA Fuel Prices. The national average gasoline price is $4.33 per gallon for regular unleaded, according to data from AAA Gas Prices.

There was a time when driving diesel made more financial sense. Diesel used to be cheaper than regular gasoline in the United States until it permanently flipped in September 2004.

That would make a person wonder what happened.

Lower taxes were part of that equation. Historically, federal and state taxes on diesel fuel were lower than or equal to those on gasoline. Simpler refining.

Before strict environmental rules, diesel required fewer intensive processing steps to remove impurities. Diesel was viewed as a lower-value byproduct of the crude oil refining process, so it was priced to sell.

But today diesel has high taxes. So blame the government. The federal excise tax on on-highway diesel is 24.4 cents per gallon, which is 6 cents higher than the 18.4 cents charged for gasoline. Many state taxes also hit diesel harder.

The U.S. Energy Information Administration (EIA) notes that rules requiring Ultra-Low Sulfur Diesel (ULSD) increased production and distribution costs.

Also, global demand is high for diesel. Heavy industry, commercial trucking, agriculture, and heating oil all compete for the same middle-distillate fuel pool, keeping demand and prices high.