The Diesel Fuel Market is Segmented by End-User (Transportation, Industrial, and Others), and Geography (North America, Europe, Asia-Pacific, Middle-East and Africa, and South America). The report offers the market size and forecasts in revenue (USD) for all the above segments.

Snapshot img { margin: 10px !important; } The global diesel fuel market has the potential to grow by USD 92.15 billion during 2020-2024, and the market’s growth momentum will accelerate throughout the forecast period because of the steady increase in year-over-year growth.

This report provides a detailed analysis of the market by end-user (transportation, industrial, and others) and geography (APAC, Europe, MEA, North America, and South America). Also, the report analyzes the market’s competitive landscape and offers information on several market vendors, including BP Plc, Chevron Corp, Exxon Mobil Corp., PetroChina Co. Ltd., Qatar Petroleum, Reliance Industries Ltd., Rosneft Oil Co., Royal Dutch Shell Plc, Saudi Arabian Oil Co., and SK Energy Co. Ltd.

Market Overview

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Market Competitive Analysis

The diesel fuel market is currently fragmented, and the degree of fragmentation will remain the same during the forecast period. Established vendors are adopting inorganic growth strategies such as mergers and acquisitions and partnerships to expand their geographic outreach. BP Plc, Chevron Corp, Exxon Mobil Corp., and PetroChina Co. Ltd. are some of the major market participants. Although the increasing oil and gas E&P investments will offer immense business opportunities, the adoption of alternative fuel vehicles will challenge the growth of the market participants. To make the most of the opportunities, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

To help clients improve their market positions, this diesel fuel market forecast report provides a detailed analysis of the market leaders and offers information on the competencies and capacities of these companies. The report also covers details on the market’s competitive landscape and provides information on the products offered by various companies. Moreover, this diesel fuel market analysis report also includes information on the upcoming trends and challenges that will influence market growth. This will help companies create strategies to make the most of future growth opportunities.

This report provides information on the production, sustainability, and prospects of several leading diesel fuel companies, including:

BP Plc
Chevron Corp
Exxon Mobil Corp.
PetroChina Co. Ltd.
Qatar Petroleum
Reliance Industries Ltd.
Rosneft Oil Co.
Royal Dutch Shell Plc
Saudi Arabian Oil Co.
SK Energy Co. Ltd.

Diesel Fuel Market: Segmentation by Region

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APAC will offer several growth opportunities to market vendors during the forecast period. In APAC, the rising number of automobiles and growing energy demand in developing countries has increased the need for crude oil and refined products such as diesel fuel. As per the IEA, the demand for oil is rising in countries such as China and India.

About 44% of the market’s growth will originate from APAC during the forecast period. The region is witnessing a significant increase in the average consumer spending owing to stable economic development. This will subsequently drive the growth of industries such as automobile, thereby driving the consumption of diesel fuel in the region. China, India, Japan, and South Korea are the key markets for diesel fuel in APAC. Market growth in this region will be faster than the growth of the market in other geographies.

Diesel Fuel Market: Segmentation by End-user

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Diesel is primarily used in the primary modes of urban mobility and transportation such as public transportation, private transportation, and freight transportation. The number of vehicles on the road is expected to increase with the growing urban population. Hence, the increased deployment of vehicles due to the rise in urbanization and industrialization will augment the consumption of diesel fuel.

The market growth by the transportation segment will be faster than the growth of the market by other segments. This report provides an accurate prediction of the contribution of all the segments to the growth of the diesel fuel market size.

Diesel Fuel Market: Key Drivers and Trends

The growing population and industrial development have been increasing the demand for energy across the world. To meet the increasing demand, untapped oil and gas resources are being explored with advanced techniques. Furthermore, to maximize the revenue, oil and gas companies are increasingly investing in mature oil and gas fields. Oil and gas exploration and production (E&P) companies have increased their investments in shale oil and gas reserve E&P projects. Moreover, to enhance energy security, g

Diesel Fuel Market Outlook

According to our latest research, the global diesel fuel market size in 2024 stands at USD 1,050 billion, reflecting the persistent demand for diesel across diverse sectors such as transportation, power generation, and industrial applications. The market is projected to expand at a CAGR of 3.7% from 2025 to 2033, reaching a forecasted market value of USD 1,460 billion by 2033. This growth trajectory is primarily fueled by robust industrialization, ongoing infrastructure development, and the rising need for reliable energy sources, especially in emerging economies. As per our in-depth analysis, the diesel fuel market remains a cornerstone of global energy consumption, albeit facing gradual transformation due to sustainability initiatives and regulatory pressures.

The diesel fuel market is experiencing significant growth, driven by its indispensable role in the transportation sector, which remains the largest consumer of diesel globally. The reliability, high energy density, and efficiency of diesel make it the preferred fuel for heavy-duty vehicles, freight transportation, and public transit systems. Additionally, emerging economies in Asia Pacific and Africa are witnessing rapid urbanization and industrialization, leading to increased demand for diesel-powered machinery and vehicles. The expansion of logistics and e-commerce sectors further amplifies the consumption of diesel, as efficient goods movement remains a critical business requirement. Despite the growing adoption of alternative fuels and electrification in certain regions, the existing infrastructure and cost-effectiveness of diesel continue to underpin its dominance in global fuel markets.

Another key growth factor for the diesel fuel market is its widespread application in power generation, particularly in regions with unreliable electricity grids or frequent power outages. Diesel generators are vital for backup power supply in commercial, residential, and industrial settings, ensuring business continuity and operational efficiency. The mining, construction, and agricultural sectors also heavily depend on diesel for powering heavy machinery and equipment. As these industries expand to meet the demands of growing populations and urban centers, the need for diesel fuel is projected to rise. Furthermore, government investments in infrastructure projects, such as roadways, railways, and ports, directly contribute to increased diesel consumption, supporting market growth over the forecast period.

Technological advancements in diesel engine efficiency and the production of cleaner diesel variants are also propelling the market forward. The development of synthetic diesel and biodiesel, which offer reduced emissions and improved environmental performance, is gaining momentum amid stringent emission regulations. These innovations are enabling market players to cater to evolving consumer preferences and regulatory requirements, while maintaining the performance advantages of traditional diesel. The integration of digital technologies for fuel management and distribution is also optimizing supply chains, enhancing market efficiency, and reducing operational costs for end-users. Such advancements are expected to sustain the relevance of diesel fuel in a transitioning energy landscape.

From a regional perspective, the Asia Pacific region stands out as the largest and fastest-growing market for diesel fuel, accounting for over 38% of global consumption in 2024. This dominance is attributed to the region’s vast industrial base, expanding transportation networks, and increasing construction activities. North America and Europe, while mature markets, continue to exhibit steady demand due to their established transportation and industrial sectors. However, both regions are witnessing a gradual shift towards cleaner fuels and electrification, influenced by stringent environmental policies. Meanwhile, Latin America and the Middle East & Africa are emerging as key growth markets, propelled by infrastructure investments, energy access initiatives, and expanding mining and agricultural activities. The regional dynamics of the diesel fuel market are expected to evolve, shaped by economic development, regulatory trends, and technological innovation.

Type Analysis

The diesel fuel market is segmented by type into petroleum diesel, synthetic diesel, and b

The global diesel fuel market reached approximately USD 233.06 Billion in 2024. The market is projected to grow at a CAGR of 3.90% between 2025 and 2034, reaching a value of around USD 341.68 Billion by 2034.

The global diesel fuel market, valued at $1,025.2 million in 2025, is projected to experience steady growth, driven primarily by the continued reliance on diesel engines in the transportation sector, particularly in heavy-duty vehicles like trucks, buses, and trains. The automotive segment is a significant contributor, although the increasing adoption of electric vehicles and stricter emission regulations present a headwind. However, the robust growth in developing economies, coupled with expanding infrastructure projects in railways and marine applications, is expected to offset this to some extent. The prevalence of diesel fuel in existing infrastructure and its relative cost-effectiveness compared to alternative fuels also contribute to market resilience. The market is segmented by fuel type (#1 and #2 diesel fuels being dominant), and application (automotive, railway, marine, and others). Major players like BP, Shell, CNPC, ExxonMobil, Sinopec, Indian Oil, Total, Pertamina, Chevron, and Petronas compete intensely, driving innovation and price competitiveness. The market's future trajectory hinges on the balance between evolving emission standards, the cost and availability of alternative fuels, and continued economic growth in key regions. The consistent 4.4% CAGR suggests a relatively stable growth pattern over the forecast period (2025-2033). Regional variations are anticipated, with North America and Europe potentially showing moderate growth due to environmental regulations, while Asia-Pacific and the Middle East & Africa might exhibit faster expansion due to industrialization and infrastructure development. The dominance of #2 diesel fuel is likely to continue, given its widespread use in heavy-duty applications. The "Others" segment in both application and fuel type categories presents an opportunity for specialized fuels and emerging technologies to capture market share. Sustained investments in research and development focused on cleaner diesel technologies will be crucial for the industry to navigate the challenges posed by environmental concerns. Competition amongst the major players will likely remain fierce, pushing for efficiency gains and strategic partnerships.

In Diesel Fuel Market, The Diesel market has an encouraging growth for the Asia Pacific region with an increase in mobility facilities over time.

The global diesel market, valued at $1,025.2 million in 2025, is projected to experience steady growth, driven primarily by the continued reliance on diesel fuel in heavy-duty transportation, construction, and agriculture. The 4.4% CAGR indicates a consistent expansion throughout the forecast period (2025-2033). While the transition towards electric and alternative fuel vehicles presents a long-term restraint, the robust demand from developing economies, particularly in Asia and Africa, where infrastructure development and industrialization are accelerating, will continue to support market growth. Furthermore, advancements in diesel engine technology focusing on improved fuel efficiency and reduced emissions are mitigating some environmental concerns and extending the lifespan of diesel's dominance in certain sectors. The market segmentation, while not explicitly provided, can be reasonably inferred to include categories based on fuel type (e.g., ultra-low sulfur diesel), application (e.g., on-road, off-road), and end-user (e.g., commercial vehicles, power generation). Major players like BP, Shell, CNPC, ExxonMobil, Sinopec, Indian Oil, Total, Pertamina, Chevron, and Petronas, are expected to continue shaping market dynamics through strategic partnerships, technological innovations, and global expansion initiatives. The competitive landscape is characterized by a mix of established multinational corporations and national oil companies. These companies are actively involved in optimizing their refining processes to meet evolving emission standards and consumer demands. The market's future trajectory hinges on several factors, including government regulations related to emissions, fluctuating crude oil prices, and the pace of adoption of alternative fuels. Despite the headwinds from environmental concerns and technological advancements, the substantial and persistent demand for diesel in numerous industrial and transportation sectors ensures a considerable market size throughout the forecast period, with continued growth potential in emerging economies.

Global Diesel fuel is segmented by Application (Transportation, Industrial), Type (Fossil fuels, Biofuels) and Geography(North America, LATAM, West Europe, Central & Eastern Europe, Northern Europe, Southern Europe, East Asia, Southeast Asia, South Asia, Central Asia, Oceania, MEA)

The global diesel fuel market, valued at $244.26 billion in 2025, is projected to experience steady growth, driven primarily by the persistent demand from the transportation and industrial sectors. A compound annual growth rate (CAGR) of 3.50% from 2025 to 2033 indicates a continuous, albeit moderate, expansion. The transportation segment, encompassing heavy-duty vehicles like trucks and buses, remains the largest consumer, significantly influenced by global logistics and freight movements. Industrial applications, including power generation and machinery operation, contribute substantially to market demand, particularly in developing economies experiencing rapid industrialization. While the "Others" segment encompasses various smaller applications, its growth is expected to be influenced by overall economic activity and emerging technologies. Growth will likely be influenced by factors such as fluctuating crude oil prices, government regulations on emissions (promoting cleaner alternatives), and the ongoing shift toward electric and alternative fuel vehicles. However, the persistent demand from heavy industries and developing economies is expected to offset some of the negative pressure from these factors. Regional variations are expected, with Asia-Pacific and the Middle East showing potentially stronger growth due to their expanding economies and infrastructure development. North America and Europe are expected to witness more moderate growth due to the ongoing adoption of stringent emission standards and the increasing popularity of electric vehicles. The competitive landscape is dominated by major integrated energy companies like Chevron, ExxonMobil, and Shell, along with significant players from Asia and the Middle East. These companies hold considerable market share due to their established refining and distribution networks. However, smaller regional players and alternative fuel providers are increasingly challenging the established order, particularly in niche markets. The long-term outlook suggests continued market growth, albeit at a pace moderated by technological advancements and regulatory changes. The industry will need to adapt to evolving environmental concerns and consumer preferences, emphasizing efficiency and sustainability in both production and distribution. Recent developments include: May 2023: Petrobras, the state oil company of Brazil, gave the green light to a revised fuel pricing policy that will result in significant cost reductions for drivers. As per the newly approved strategy, gasoline, and diesel prices will experience a considerable decline, with a nearly 13% reduction., February 2023: Europe officially confirmed the prohibition on selling new petrol and diesel cars starting in 2035. As the world's second-largest car market, this decision follows the passing of a law by the European Parliament. The law mandated car manufacturers to achieve complete elimination of CO2 emissions from all newly produced vehicles.. Key drivers for this market are: 4., Increasing Demand from Industrial Applications4.; Growing Infrastructure Across the World. Potential restraints include: 4., Increasing Demand from Industrial Applications4.; Growing Infrastructure Across the World. Notable trends are: Transportation Segment is to Expected to Dominate in the Market.

The No.2 diesel fuel market size is anticipated to witness lucrative growth rate during the forecast period i.e., between 2025-2037.

The size of the Diesel Fuel market was valued at USD XX Million in 2024 and is projected to reach USD XXX Million by 2033, with an expected CAGR of XX% during the forecast period.Diesel fuel is one of the most petroleum-based forms of fuels that are in great use for diesel engines. It is a complicated mixture of hydrocarbons, which will ignite by compression inside the combustion chamber of the engine instead of a spark plug as it happens for the gasoline engines. In respect to the energy content, diesel has high energy density as well, providing the best solution for heavy machines, such as trucks, buses, and construction. Its use spreads through various areas, including some industrial applications-including power production or in marine shipping.

In June 2025, one gallon of diesel cost an average of 3.6 U.S. dollars in the United States. That was an increase compared to the month prior, but lower than prices in June 2024. Impact of crude prices on motor fuel consumer prices Diesel prices are primarily determined by the cost of crude oil. In fact, crude oil regularly accounts for around 50 percent of end consumer prices of diesel. As such, supply restrictions or weak demand outlooks influence prices at the pump. The fall in diesel prices noted in the latter half of 2024 is a reflection of lower crude prices. Diesel and gasoline price development The usage of distillate fuel oil began in the 1930s, but until further development in the 1960s, diesel vehicles were mostly applied to commercial use only. In the U.S., diesel-powered cars remain a fairly small portion of the automobile market and diesel consumption is far lower than gasoline consumption. In general, gasoline also tends to be more widely available than diesel fuel and usually sells for a lower retail price. However, diesel engines have better fuel economy than gasoline engines and, as such, tend to be used for large commercial vehicles.

No 2 Diesel Fuel Market Outlook

The global No 2 Diesel Fuel market size is projected to grow significantly over the forecast period, with a market value of approximately USD 200 billion in 2023, expected to reach around USD 320 billion by 2032, reflecting a compound annual growth rate (CAGR) of 5.2%. This growth is primarily driven by the expanding transportation sector and the increasing reliance on diesel fuel for power generation and industrial applications.

One of the primary growth factors for the No 2 Diesel Fuel market is the rising demand for diesel engines in the transportation sector. Diesel engines are known for their fuel efficiency and durability, making them a preferred choice for commercial vehicles, trucks, and buses. With the global increase in logistics and freight transport activities, the demand for No 2 Diesel Fuel is expected to rise considerably. Additionally, emerging economies are experiencing significant growth in vehicle ownership, further boosting the market.

Another crucial factor contributing to market growth is the use of diesel fuel for power generation. Diesel generators are widely used in various sectors, including industrial and residential, to provide backup power during outages. The reliability and efficiency of diesel generators make them indispensable, particularly in regions with unstable power grids. Moreover, ongoing infrastructure development projects in many parts of the world are leading to increased demand for temporary power solutions, thereby driving the No 2 Diesel Fuel market.

The industrial sector also plays a significant role in the growth of the No 2 Diesel Fuel market. Diesel fuel is extensively used in industrial machinery and equipment due to its high energy density and efficiency. Industries such as construction, mining, and manufacturing rely heavily on diesel-powered machines for their daily operations. The continuous expansion and modernization of these industries contribute to the growing demand for No 2 Diesel Fuel.

From a regional perspective, the Asia Pacific region is expected to witness substantial growth in the No 2 Diesel Fuel market. Rapid industrialization, urbanization, and an increasing number of vehicles are key factors driving the demand for diesel fuel in countries like China and India. North America and Europe are also significant markets due to their well-established transportation and industrial sectors. However, stringent environmental regulations in these regions may impact market dynamics. The Middle East & Africa and Latin America are emerging markets with growing infrastructure investments and industrial activities, further propelling market growth.

In addition to these growth drivers, the role of Petroleum Fuel Dyes is becoming increasingly significant in the No 2 Diesel Fuel market. These dyes are used to differentiate between various types of fuel for regulatory, taxation, and safety purposes. By adding specific colors to diesel fuel, authorities can easily identify and monitor fuel usage, ensuring compliance with environmental and tax regulations. This practice not only aids in preventing fuel fraud but also helps in maintaining the quality and integrity of diesel products. As the market expands, the demand for effective fuel dyes is expected to rise, supporting the industry's efforts to adhere to stringent regulatory standards.

Type Analysis

No 2 Diesel Fuel is primarily segmented into Low Sulfur Diesel and Ultra-Low Sulfur Diesel. Low Sulfur Diesel has been a traditional choice due to its widespread availability and lower cost. However, environmental concerns and stringent regulations regarding sulfur emissions have led to a shift towards Ultra-Low Sulfur Diesel (ULSD). ULSD contains significantly less sulfur, making it a cleaner-burning fuel that reduces harmful emissions. This shift is particularly prominent in developed regions like North America and Europe, where stringent emission standards are enforced.

The growth of Ultra-Low Sulfur Diesel is also driven by the increasing adoption of advanced diesel engines that require cleaner fuel to function efficiently. These engines are designed to meet strict emission norms, and using ULSD helps in complying with these regulations. Additionally, the rising awareness about environmental sustainability is encouraging consumers and industries to opt for cleaner fuel options, thus boosting the demand for ULSD.

Low Sulfur Diese

The global No. 2 Diesel Fuel market is experiencing robust growth, driven by increasing industrialization and transportation activities worldwide. While precise market size data for 2025 isn't provided, considering typical market sizes for similar fuel types and a plausible CAGR (let's assume a conservative 3% CAGR for illustrative purposes), we can estimate the 2025 market size to be approximately $250 billion USD. This is based on an extrapolation of known growth patterns in energy markets. This significant market value is further fueled by the rising demand from various sectors, including automotive, marine, and aviation. The market segmentation highlights the shift towards cleaner fuels, with Ultra-Low Sulfur Diesel (ULSD) experiencing the most rapid growth due to increasingly stringent environmental regulations. However, the high sulfur diesel segment remains significant, particularly in developing economies with less stringent regulations. The continued expansion of global trade and industrial output is a key driver for future growth, alongside technological advancements in fuel efficiency and emission control. Regional growth will vary, with developing economies in Asia-Pacific expected to demonstrate faster expansion than mature markets in North America and Europe due to higher rates of industrialization and urbanization. However, government policies aimed at reducing carbon emissions and promoting renewable energy sources pose a potential restraint to the growth of the No. 2 Diesel Fuel market in the long term. This market landscape is dominated by several major integrated oil and gas companies including ExxonMobil, BP, Shell, and Chevron, who leverage their extensive refining and distribution networks. Smaller regional players and specialized producers also contribute, especially in areas with specific fuel specifications or local supply chains. The competitive landscape is characterized by intense price competition, ongoing technological innovation, and the increasing pressure to meet ever-stricter environmental standards. The future trajectory of the No. 2 Diesel Fuel market depends on the interplay of economic growth, environmental policy, technological advancement in fuel alternatives, and geopolitical factors affecting global energy markets. The continued demand for efficient and reliable energy sources, coupled with the ongoing need to balance environmental considerations, will shape the evolution of this dynamic market in the coming years.

Retail Fuel Market Outlook

The global retail fuel market size was valued at approximately USD 4.5 trillion in 2023 and is projected to reach around USD 6.8 trillion by 2032, growing at a compound annual growth rate (CAGR) of 4.7% during the forecast period. This growth is primarily driven by the increasing demand for fuel due to the rising number of vehicles on the road, economic expansion in emerging markets, and technological advancements in fuel distribution channels. Furthermore, the accelerated urbanization and industrialization processes across developing regions have significantly contributed to the expansion of the retail fuel sector, underscoring the critical role of energy in fostering economic development.

The surge in passenger and commercial vehicles, particularly in emerging economies, is a significant driver of the retail fuel market. As disposable incomes rise and urbanization intensifies, more individuals are purchasing vehicles, resulting in increased fuel consumption. Technological advancements in vehicle manufacturing and the introduction of more fuel-efficient vehicles are also influencing fuel consumption patterns, prompting retailers to diversify their offerings. Moreover, the shift towards cleaner fuel alternatives, such as CNG and LPG, is gaining momentum, driven by stringent environmental regulations and increasing consumer awareness about sustainable practices. This diversification in the fuel portfolio serves as a catalyst for market growth, ensuring that retailers can cater to a broader customer base.

Infrastructure development plays a pivotal role in supporting the growth of the retail fuel market. Governments worldwide are investing heavily in the expansion and modernization of road networks, facilitating more efficient fuel distribution and accessibility. This is particularly evident in regions such as Asia Pacific, where rapid industrialization necessitates a robust transportation infrastructure. Additionally, technological advancements in fuel dispensing and payment systems are enhancing the consumer experience at fuel stations, thereby encouraging greater fuel consumption. The integration of digital payment solutions and loyalty programs is transforming fuel retail into a more consumer-centric industry, attracting tech-savvy customers and driving market growth.

Environmental regulations and the push for cleaner energy sources are reshaping the landscape of the retail fuel market. Governments are implementing policies to reduce carbon emissions, which is prompting a gradual shift from conventional fuels like gasoline and diesel to alternatives like CNG and LPG. This transition is supported by the development of infrastructure for alternative fuel vehicles, such as charging stations for electric vehicles (EVs). While the adoption of EVs presents a potential challenge, it also opens up new avenues for innovation and growth in fuel retail, as companies explore hybrid models that integrate traditional and alternative energy sources. The evolution of fuel types and the drive for sustainability are key factors propelling the market forward.

Fuel Type Analysis

The fuel type segment in the retail fuel market encompasses a diverse range of options, including gasoline, diesel, CNG, LPG, and others, each contributing uniquely to the market dynamics. Gasoline remains the most widely consumed fuel globally, primarily due to its widespread availability and the dominance of gasoline-powered vehicles. Its popularity is further sustained by technological enhancements in gasoline engines that offer improved fuel efficiency and reduced emissions, aligning with stringent environmental standards. However, the growing environmental consciousness and regulatory pressures are gradually nudging consumers towards cleaner alternatives, which is slightly tempering the growth rate of gasoline.

Diesel fuel occupies a significant share of the retail fuel market, especially in regions with a high prevalence of commercial vehicles. Diesel engines are favored for their superior fuel efficiency and torque, which are essential for heavy-duty applications. In several European countries, diesel continues to be the preferred fuel for passenger vehicles as well, although this is changing with stricter emission norms. The advent of ultra-low sulfur diesel (ULSD) and biodiesel blends has also contributed to maintaining diesel’s relevance in the market, as these offer more environmentally friendly options while leveraging existing diesel infrastructure.

Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) are gaining traction as viable alternatives to tradition

The United States is by far the largest exporter of diesel shipped via tankers. In 2024, around 212,000 barrels of diesel left U.S. ports every day. This was over three times the amount sent from India, which ranked second.

The cost of diesel fuel in the United States reached an annual average of 3.76 U.S. dollars per gallon in 2024. This was a decrease compared to the previous year, when diesel sold for an average of 4.21 U.S. dollars per gallon. In 2022, increased economic activity and thus fuel demand combined with supply constraints following the Russia-Ukraine war, which resulted in a notable rise in monthly diesel prices Crude oil prices and their impact on motor fuel prices Motor fuel prices largely mirror major oil benchmarks, such as the OPEC reference basket, WTI, and Brent. As such, the oil glut in 2015 and 2016, which followed years of increased oil production output by the U.S., is largely responsible for the fall in diesel prices seen in those years. The same is true for the 2020 pandemic-induced oil crisis and fall in benchmarks that year. Diesel and gasoline price development The usage of diesel began in the 1930s, but until further development in the 1960s, diesel vehicles were mostly used commercially. In the U.S., diesel-powered cars remain a fairly small portion of the automobile market and diesel fuel consumption is far lower than gasoline consumption. In general, gasoline also tends to be more widely available than diesel fuel and usually sells for a lower retail price. However, diesel engines have better fuel economy than gasoline engines, and as such are often used for large commercial vehicles.

The global diesel retail market is a significant sector, projected to be valued at approximately $500 billion in 2025. This robust market is experiencing steady growth, with a Compound Annual Growth Rate (CAGR) estimated at 3% from 2025 to 2033. Several key factors drive this expansion, including the continued reliance on diesel fuel in heavy-duty transportation (trucks, trains, and construction equipment), particularly in developing economies experiencing rapid industrialization. Growing global trade and logistics activities also contribute to the demand. However, the market faces challenges. Stringent environmental regulations aimed at reducing greenhouse gas emissions and the increasing adoption of alternative fuels, such as biodiesel and electric vehicles, pose significant restraints on growth. The market segmentation reveals a predominance of Diesel #2 fuel, owing to its widespread use in various applications. While passenger cars are transitioning towards alternative fuels, the heavy-duty segment remains a significant driver of demand for Diesel #2. The geographical distribution shows strong regional disparities, with North America and Europe currently leading the market, although Asia-Pacific is projected to show significant growth in the coming years due to its expanding industrial base and infrastructure development. Major players like ExxonMobil, Chevron, and others are strategically positioning themselves to navigate these market dynamics and capture opportunities within the evolving landscape. The forecast for the diesel retail market through 2033 indicates continued growth, albeit at a moderate pace, as the transition to cleaner fuels gains momentum. The market's future success will hinge on the ability of industry players to adapt to evolving environmental regulations, invest in sustainable technologies like biodiesel blends, and meet the increasing demand in emerging markets while managing the potential challenges from the growing adoption of electric vehicles and alternative fuels in the transportation sector. The market will likely see increased focus on optimizing distribution networks and improving fuel efficiency to maintain competitiveness and profitability.

The global diesel as fuel market is projected to reach US$ 883.13 billion by 2033, growing at a CAGR of 2.09% from 2025 to 2033. The increasing adoption of diesel engines in heavy-duty vehicles, construction, mining, and marine applications is driving the market growth. The stringent emission norms and regulations imposed by governments worldwide are also fostering the demand for diesel additives, such as diesel particulate filters and selective catalytic reduction systems. Key market players include Sinopec, Repsol, Phillips 66, Husky Energy, CNOOC, TotalEnergies, Marathon Petroleum, Valero Energy, PetroChina, ExxonMobil, BP, Chevron, Eni, Shell, and Cenovus Energy. These companies are investing in research and development to enhance the efficiency and performance of diesel engines and fuels. The Asia-Pacific region is expected to witness significant growth due to the rising demand for diesel in emerging economies like China and India. North America and Europe are also expected to contribute to the market growth due to the increased adoption of diesel engines in the construction and mining sectors. Recent developments include: The global Diesel As Fuel Market is expected to reach USD 883.13 billion in 2023 and USD 1064.0 billion by 2032, exhibiting a CAGR of 2.09% during the forecast period. Increasing demand for diesel fuel in transportation, construction, agriculture, and industrial sectors is driving market growth. Government regulations promoting diesel fuel usage and technological advancements in diesel engines further contribute to the market's expansion. Key industry participants include BP, Chevron, Shell, ExxonMobil, and TotalEnergies, who are investing in research and development to enhance diesel fuel efficiency and reduce emissions.. Key drivers for this market are: Increased demand in construction, mining and transportation sectors Growing adoption in developing economies Technological advancements for emission reduction Expansion of power generation applications Rising environmental concerns.. Potential restraints include: Rising transportation demands stringent emission regulations, increasing infrastructure investments; technological advancements; and fluctuating crude oil prices..

In April 2025, the New York Harbor diesel fuel price was approximately 2.13 U.S. dollars per gallon. This was notably lower than the price recorded the previous year and a result of lower crude oil prices. The spot prices of Los Angeles, California ultra-low-sulfur No. 2 diesel fuel tended to be the highest in the period shown. California drivers experience some of the country's highest gasoline and diesel prices as it is among the U.S. states with the highest gas tax.