
Diesel fuel, also known as diesel oil, is a liquid fuel designed for diesel engines. It is produced from various sources, the most common being petroleum, which is a fossil fuel. Other sources include biomass, animal fat, biogas, natural gas, and coal liquefaction. While diesel fuel is a fossil fuel, the term biofuel is sometimes used to refer to diesel fuel that is derived from biomass or vegetable seed oil. Biofuels are considered more sustainable than fossil fuels but are more expensive. For example, biodiesel is between 70% and 130% more expensive than fossil diesel. Additionally, diesel fuel prices are typically higher than gasoline prices due to higher federal excise taxes.
| Characteristics | Values |
|---|---|
| Diesel fuel type | Petroleum-based diesel, biodiesel, biomass-to-liquid (BTL), gas-to-liquid (GTL) diesel |
| Diesel fuel origin | Fractional distillation of crude oil, biomass materials |
| Diesel fuel use | Motor vehicles, non-motor vehicles (e.g. boilers for steam engines), diesel-engine generators |
| Diesel fuel price | Varies by region and over time; in the UK, diesel prices peaked in July 2022 at £1.98 per litre |
| Fossil fuel price | Varies by region and over time; fossil fuels are generally getting more expensive |
| Biofuel price | 70-130% more expensive than fossil fuels on the wholesale market |
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What You'll Learn
- Diesel fuel is refined from crude oil and biomass materials
- Diesel engines produce harmful emissions when burning fuel
- Diesel exhaust, especially from older engines, can cause health damage
- Ultra-low-sulfur diesel (ULSD) is a cleaner-burning fuel
- Biodiesel and renewable diesel offer significant reductions in GHG emissions

Diesel fuel is refined from crude oil and biomass materials
Diesel fuel is a distillate fuel oil used in motor vehicles with compression ignition engines. It is named after its inventor, German engineer Rudolf Diesel, who patented the original design in 1892. Diesel fuel is commonly refined from crude oil and biomass materials.
Crude oil is classified by density (API gravity) and sulfur content, and these physical characteristics determine how refineries process it. Light crude oil, with its higher API gravity, generally has more light hydrocarbons and can be used to produce high-value products such as gasoline, diesel fuel, and jet fuel through simple distillation. On the other hand, heavy crude oils require additional, more expensive processing to yield high-value products. Some crude oils also have a high sulfur content, which is undesirable in both processing and product quality.
Diesel fuel derived from crude oil produces many harmful emissions when burned, including ground-level ozone and particulate matter. To address this issue, the U.S. Environmental Protection Agency (EPA) established standards to limit the sulfur content of diesel fuel and emissions from new diesel engines. As a result, the petroleum industry now produces Ultra-Low-Sulfur Diesel (ULSD) fuel, which contains a maximum sulfur concentration of 15 parts per million.
Diesel fuel can also be produced from biomass materials through processes such as gasification, pyrolysis, and hydrothermal processing. Gasification involves thermally converting biomass to syngas and then catalytically converting it to hydrocarbon fuels. Pyrolysis chemically decomposes organic materials at elevated temperatures in the absence of oxygen, producing a liquid pyrolysis oil that can be upgraded to hydrocarbon fuels. Hydrothermal processing uses high pressure and moderate temperatures to decompose biomass or wet waste materials into an oil that can be catalytically upgraded to hydrocarbon fuels.
Diesel fuel prices have been higher than regular-grade gasoline prices in recent years due to factors such as high demand, the transition to less polluting fuels, and excise taxes. However, historically, diesel fuel prices were lower than gasoline prices, except during cold winters when demand for heating oil was higher.
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Diesel engines produce harmful emissions when burning fuel
Particulate matter, or diesel particulate matter (DPM), is a solid material in diesel exhaust. More than 90% of DPM is less than 1 µm in diameter, making it a subset of particulate matter less than 2.5 microns in diameter (PM2.5). PM2.5 is associated with adverse health effects and has air quality standards. DPM is typically composed of carbon particles ("soot") and numerous organic compounds, including over 40 known cancer-causing substances. Examples include polycyclic aromatic hydrocarbons, benzene, formaldehyde, and acetaldehyde.
Gaseous pollutants emitted by diesel engines include volatile organic compounds, oxides of nitrogen (NOx), unburned hydrocarbons (HC), carbon monoxide (CO), and carbon dioxide (CO2). NOx emissions can undergo chemical reactions in the atmosphere, leading to the formation of PM2.5 and ozone. Other emissions from diesel engines can include metals and compounds from engine wear, or compounds emitted from emission control catalysts. Low-quality fuels can also be a source of emissions, with residual fuels used in large marine engines containing heavy metals and other compounds with adverse health and environmental effects.
To address the problem of harmful emissions from diesel engines, the U.S. Environmental Protection Agency (EPA) established standards for the sulfur content of diesel fuel and emissions from new diesel engines. The transition to lower-sulfur diesel fuels in the United States increased diesel fuel production and distribution costs. Ultra-Low-Sulfur Diesel (ULSD) fuel, a cleaner-burning diesel fuel with a maximum sulfur concentration of 15 parts per million (ppm), is now mostly sold in the United States for use in vehicles. Modern diesel engines equipped with emission after-treatment devices emit much lower levels of pollutants.
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Diesel exhaust, especially from older engines, can cause health damage
The transition to less-polluting, lower-sulfur diesel fuels has increased diesel fuel production and distribution costs. Ultra-Low-Sulfur Diesel (ULSD) requires more refining to remove sulfur, contributing to higher manufacturing prices. The U.S. Environmental Protection Agency (EPA) has established standards for sulfur content and emissions from new diesel engines, aiming to reduce harmful emissions.
Taxes also play a significant role in diesel prices. The federal excise tax for on-highway diesel fuel is 24.3 to 24.4 cents per gallon, which is 6 to 6.4 cents higher than the tax on gasoline. This tax disparity reflects the greater use of diesel in heavier trucks, which cause more road damage. Diesel demand is also influenced by home heating oil demand, as they are both derived from petroleum distillation. During winters, the increased demand for heating oil raises retail diesel prices.
In summary, diesel exhaust can cause health damage due to the emission of harmful pollutants. The transition to cleaner-burning diesel fuels and more efficient engines has led to increased production and distribution costs, while taxes and seasonal demand fluctuations further contribute to higher diesel prices. These factors collectively influence the pricing and health impact of diesel fuel.
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Ultra-low-sulfur diesel (ULSD) is a cleaner-burning fuel
Diesel fuel is any liquid fuel specifically designed for use in a diesel engine, which is a type of internal combustion engine. The most common type of diesel fuel is a specific fractional distillate of petroleum fuel oil, which is a fossil fuel refined from crude oil.
Ultra-low-sulfur diesel (ULSD) is a type of diesel fuel with significantly reduced sulfur levels. ULSD has been the norm for nearly all petroleum-based diesel fuel distributed in North America and Europe since 2006. It contains 97% less sulfur than low-sulfur diesel (LSD).
Sulfur in diesel fuel produces air pollution emissions that are harmful to human health. ULSD is a cleaner-burning fuel that produces less harmful emissions. It was developed to allow the use of improved pollution control devices that reduce diesel emissions more effectively but can be damaged by sulfur.
Despite its environmental benefits, ULSD has significant drawbacks. The more stringent refining process used to produce ULSD includes catalytic cracking and hydrodesulfurization, which significantly destabilizes the fuel. This adds to the need for closer monitoring of fuel and fuel tank conditions. Additionally, ULSD is more prone to microbial growth, which can cause corrosion and sediment buildup in filters and fuel lines.
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Biodiesel and renewable diesel offer significant reductions in GHG emissions
Diesel fuel is any liquid fuel designed for use in a diesel engine, which is a type of internal combustion engine. The most common type of diesel fuel is a specific fractional distillate of petroleum fuel oil, known as petrodiesel. However, alternatives that are not derived from petroleum, such as biodiesel, biomass-to-liquid (BTL), or gas-to-liquid (GTL) diesel, are increasingly being developed and adopted.
Biodiesel and renewable diesel are made from renewable resources, turning waste into fuel that burns cleaner than petrodiesel. Biodiesel is often blended with renewable diesel and traditional diesel. Renewable diesel is a "drop-in" fuel, meaning it can be used in existing diesel engines without requiring any new infrastructure upgrades.
Biodiesel and renewable diesel offer significant reductions in greenhouse gas (GHG) emissions. Life-cycle GHG emissions reductions for producing biodiesel and renewable diesel from oilseeds and waste grease range from 40% to 86% compared to petrodiesel. Converting tallow, used cooking oil, and distillers corn oil into biodiesel and renewable diesel could achieve even higher GHG reductions of 79% to 86% compared to petrodiesel.
The wide range of GHG emissions associated with biodiesel and renewable diesel production reflects the significant variance in land-use change (LUC) estimations adopted by different organizations. The choice of feedstock or crop used for production also influences the composition of farming emissions. For example, using soybean oil, canola oil, or carinata oils for biodiesel and renewable diesel production results in GHG emissions reductions of 40% to 69% compared to petrodiesel.
In addition to feedstock and crop choices, sustainable farming practices, such as cover cropping and increased soil organic carbon sequestration, can further reduce GHG emissions. Replacing fossil energy and chemicals with low-emission alternatives is critical to decarbonizing the biofuel conversion processes. For instance, replacing hydrogen made from natural gas with renewable hydrogen can significantly reduce emissions.
By transitioning from fossil fuels to sustainably produced biofuels, various transportation sectors can be decarbonized. This is particularly important for hard-to-electrify transportation sectors, such as long-haul trucks for freight and shipping, where electric vehicles are not yet a viable option.
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Frequently asked questions
Yes, diesel is a fossil fuel. It is a liquid fuel specifically designed for use in a diesel engine. The most common type of diesel fuel is a fractional distillate of petroleum fuel oil.
Yes, diesel fuel prices have been higher than regular-grade gasoline prices on a dollar-per-gallon basis almost continuously since September 2004.
The transition to less polluting, lower-sulfur diesel fuels in the United States and Europe increased diesel fuel production and distribution costs. Additionally, the federal excise tax for on-highway diesel fuel is higher than that for gasoline.
Yes, biodiesel is between 70% and 130% more expensive than fossil diesel on the wholesale market due to the rising price of feedstocks.
Diesel is more expensive than some other fossil fuels, such as the cheap heavy fuel oils used in watercraft diesel engines. However, it is important to consider the external costs associated with fossil fuels, such as the greenhouse gas emissions that contribute to climate change.









































