In May 2025, one gallon of diesel cost an average of 3.5 U.S. dollars in the United States. That was a decrease compared to the month prior, and also lower than prices in May 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.

Retail price of diesel fuel for private cars in the United Kingdom are estimated to continuously increase from 119.4 to 144.2 British pence per liter, respectively between 2020 and 2035.

Gasoline rose to 2.19 USD/Gal on July 11, 2025, up 1.65% from the previous day. Over the past month, Gasoline's price has risen 1.03%, but it is still 12.72% lower than a year ago, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Gasoline - values, historical data, forecasts and news - updated on July of 2025.

United States - US Diesel Sales Price was 3.72700 $ per Gallon in June of 2025, according to the United States Federal Reserve. Historically, United States - US Diesel Sales Price reached a record high of 5.81000 in June of 2022 and a record low of 0.95300 in February of 1999. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - US Diesel Sales Price - last updated from the United States Federal Reserve on July of 2025.

Discover the factors driving the recent surge in diesel prices, including market trends, global inventories, and OPEC+ strategies.

Get comprehensive insights into the Diesel market, with a focused analysis of the Diesel price trend across Asia, Europe, North America, Latin America, and the Middle East Africa.

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.

Graph and download economic data for US Diesel Sales Price (GASDESW) from 1994-03-21 to 2025-07-07 about diesel, sales, commodities, and USA.

Diesel prices have risen for the second time in nine weeks, influenced by diesel futures, U.S.-China trade negotiations, and OPEC+ output changes.

The size of the Diesel Industry market was valued at USD 244.26 Million in 2023 and is projected to reach USD 310.77 Million by 2032, with an expected CAGR of 3.50% during the forecast period. The diesel sector, an essential element of the global energy landscape, involves the production, distribution, and utilization of diesel fuel and engines. Diesel fuel is produced from crude oil through refining methods and is predominantly utilized in transportation modes such as trucks, buses, trains, and ships, owing to its superior energy density and efficiency. Moreover, diesel engines find extensive application in industrial settings and power generation. In recent years, the industry has encountered significant transformations prompted by environmental regulations and the emergence of alternative energy sources. Governments across the globe are increasingly enforcing stringent emissions standards to address climate change and mitigate air pollution, which has led the diesel sector to invest in cleaner technologies and the development of low-emission diesel engines. Additionally, the rise of electric vehicles and advancements in renewable energy technologies present considerable challenges to the prevailing dominance of diesel. Nevertheless, the diesel industry continues to demonstrate resilience, especially in areas where diesel power is vital for heavy-duty transportation and industrial activities. The future of the market will likely depend on its capacity to innovate and adapt to a swiftly changing energy environment, while balancing environmental considerations with the persistent demand for dependable, high-performance energy solutions. 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: Increasing Demand from Industrial Applications4., Growing Infrastructure Across the World. Potential restraints include: A Rise in Concerns Related to Carbon Emissions and A Shift Towards Electric Vehicles and Renewable Sources of Energy. Notable trends are: Transportation Segment is to Expected to Dominate in the Market.

The global fuel energy price index stood at 153.15 index points in May 2025, up from 100 in the base year 2016. Figures decreased that month due to lower heating fuel demand and a fall in crude oil prices. The fuel energy index includes prices for crude oil, natural gas, coal, and propane. Supply constraints across multiple commodities The global natural gas price index surged nearly 11-fold, and the global coal price index rose almost seven-fold from summer 2020 to summer 2022. This notable escalation was largely attributed to the Russia-Ukraine war, exerting increased pressure on the global supply chain. Global ramifications of the Russia-Ukraine war The invasion of Ukraine by Russia played a role in the surge of global inflation rates. Notably, Argentina bore the brunt, experiencing a hyperinflation rate of 92 percent in 2022. The war also exerted a significant impact on global gross domestic product (GDP) growth. Saudi Arabia emerged with a notable increase of nearly three percent, as several Western nations shifted their exports from Russia to Middle Eastern countries due to the sanctions imposed on the former.

The dataset contains petrol and diesel prices for 698 cities across India. Each data point in the dataset represents the average price of petrol or diesel for a particular city on a particular day. The dataset includes information on the city name, state, and the average price of petrol and diesel per liter.

This dataset can be used for various applications such as analyzing the trends in petrol and diesel prices across different regions of India, identifying the factors that affect fuel prices, and predicting the future price of petrol and diesel in different cities. It can also be used by policymakers to analyze the impact of changes in fuel prices on the economy and to design appropriate policies to stabilize fuel prices.

Researchers and analysts in the energy sector, financial institutions, and other related fields can use this dataset to conduct statistical analysis, build forecasting models, and develop insights into the dynamics of fuel prices in India. Additionally, this dataset could be used to build visualizations or interactive dashboards that could help consumers better understand the trends in fuel prices and plan their budgets accordingly.

The price of gas in the United Kingdom was 106 British pence per therm in the fourth quarter of 2024. It is anticipated gas prices will increase to 131 pence in the second quarter of 2025 before gradually falling to just under 80 pence by the second quarter of 2027.
Surging energy costs and the cost of living crisis At the height of the UK's cost of living crisis in 2022, approximately 91 percent of UK households were experiencing rising prices compared with the previous month. It was during 2022 that the UK's CPI inflation rate reached a peak of 11.1 percent, in October of that year. Food and energy, in particular, were the main drivers of inflation during this period, with energy inflation reaching 26.6 percent, and food prices increasing by 18.2 percent at the height of the crisis. Although prices fell to more expected levels by 2024, an uptick in inflation is forecast for 2025, with prices rising by 3.7 percent in the third quarter of the year. Global Inflation Crisis The UK was not alone in suffering rapid inflation during this time period, with several countries across the world experiencing an inflation crisis. The roots of the crisis began as the global economy gradually emerged from the COVID-19 pandemic in 2021. Blocked-up supply chains, struggled to recover as quickly as consumer demand, with food and energy prices also facing upward pressure. Russia's invasion of Ukraine in February 2022 led to Europe gradually weening itself of cheap Russian energy exports, while for several months Ukraine struggled to export crucial food supplies to the rest of the World.

Diesel prices have rebounded with an increase in ultra-low sulfur diesel futures and retail prices, influenced by geopolitical factors and global market dynamics.

The global diesel engine market, valued at $58.94 billion in 2025, is projected to experience a compound annual growth rate (CAGR) of -2.2% from 2025 to 2033. This negative growth reflects the ongoing shift towards stricter emission regulations globally and the increasing adoption of alternative fuel technologies, such as electric and hybrid powertrains, particularly in the automotive and light commercial vehicle sectors. However, the market's decline is not uniform across all segments. Continued demand in heavy-duty applications, including construction, mining, and marine, will partially offset the decline in other sectors. Key drivers for the remaining market include the robust growth in infrastructure development in emerging economies and the need for reliable and cost-effective power solutions in off-grid areas. The market is dominated by established players like Cummins, Caterpillar, and Daimler, who possess significant manufacturing capabilities and strong distribution networks. However, increasing competition from Chinese manufacturers like Weichai and Yuchai is noticeable, particularly in price-sensitive markets. The market’s future trajectory will depend significantly on the pace of technological advancements in alternative fuel engines, the stringency of emission standards, and the overall global economic climate. The restraining factors include the aforementioned stringent emission regulations (e.g., Euro VI and EPA standards) leading to higher production costs and potentially impacting affordability. Furthermore, fluctuating fuel prices and the increasing adoption of alternative powertrains present substantial challenges. Market segmentation analysis will reveal specific growth areas, possibly within specialized niches like high-horsepower engines for heavy machinery or engines designed for specific applications demanding higher durability. Ongoing research and development in areas such as improved fuel efficiency and reduced emissions will play a crucial role in shaping the future landscape of the diesel engine market. This includes focusing on advancements in aftertreatment technologies (e.g., selective catalytic reduction) to meet tightening environmental regulations. Successful companies will likely be those adapting to the changing market dynamics through diversification, technological innovation, and strategic partnerships.

Graph and download economic data for Ultra-Low-Sulfur No. 2 Diesel Fuel Prices: U.S. Gulf Coast (DDFUELUSGULF) from 2006-06-14 to 2025-07-07 about diesel, fuels, commodities, and USA.

The global diesel car market, valued at $591.9 million in 2025, is projected to experience a Compound Annual Growth Rate (CAGR) of -3.9% from 2025 to 2033. This decline reflects a broader trend of decreasing diesel vehicle adoption globally, primarily due to stricter emission regulations and the rising popularity of electric and hybrid vehicles. While passenger vehicles currently constitute a larger segment of the market, commercial vehicles are expected to show relatively stronger resilience in the near term due to their usage in logistics and other sectors where fuel efficiency remains a key consideration. Engine size segmentation shows a higher concentration in the 2.0-3.0L range, reflecting the preference for a balance between performance and fuel economy. Leading manufacturers like Volkswagen, Daimler, BMW, and Toyota are actively adapting their strategies to navigate this changing landscape, focusing on improving diesel engine technology to meet increasingly stringent emission standards or shifting investments towards alternative fuel vehicles. Regional variations are expected, with regions like Europe, where diesel cars once enjoyed considerable popularity, experiencing steeper declines compared to others where diesel adoption has historically been lower. The market's contraction is further hampered by increasing raw material costs and the development of more efficient alternatives. The contraction of the diesel car market is driven by several interconnected factors. Government regulations targeting harmful emissions are forcing manufacturers to invest heavily in cleaner technologies, increasing production costs and impacting the overall market price competitiveness of diesel vehicles. Consumers are increasingly aware of the environmental impact of diesel emissions and are shifting their preferences towards electric, hybrid, and gasoline vehicles with improved fuel efficiency. While some regions might see a degree of persistence in diesel vehicle use within the commercial sector due to factors like cost and range, the long-term outlook remains negative. The market's future will largely be shaped by the success of manufacturers in adapting to stricter emission regulations and consumer demand for sustainable alternatives. Market players are likely to pursue strategies involving hybridization of diesel engines or focusing on niche markets where diesel vehicles still hold advantages.

Renewable diesel is a cleaner, more environmentally friendly diesel fuel made from renewable resources like biomass, vegetable oils, and waste oils or fats. Although it currently costs more than petroleum diesel, the price is expected to decline in the future as production capacity increases. Government policies and incentives, like California's Low Carbon Fuel Standard, have helped support the development of the renewable diesel industry.

The Light Cycle Oil (LCO) market is experiencing robust growth, driven by increasing demand from various sectors. While precise figures for market size and CAGR are not provided, based on industry trends and comparable markets, a reasonable estimation can be made. Let's assume a 2025 market size of $15 billion USD for the global LCO market, with a Compound Annual Growth Rate (CAGR) of 4% projected for the period 2025-2033. This growth is fueled primarily by the expanding maritime and transportation sectors, which rely heavily on diesel fuel derived from LCO. The increasing use of LCO in the production of gasoline and kerosene also contributes significantly to market expansion. Furthermore, growth in mining and industrial applications further solidifies LCO's importance within the global energy landscape. The market's regional distribution is likely skewed toward regions with strong refining capacities and significant energy consumption, such as North America, Europe, and Asia-Pacific. However, emerging economies in the Middle East and Africa present considerable untapped potential, promising future market expansion. Several factors could influence the trajectory of LCO market growth. Stringent environmental regulations regarding sulfur content and emissions pose a challenge, necessitating ongoing investment in refining technologies. Fluctuations in crude oil prices also impact LCO production costs and profitability. Nevertheless, the consistent demand for fuels, particularly diesel, across various sectors ensures continued relevance for LCO. The competitive landscape is characterized by a mix of major integrated oil companies and regional players. The ongoing consolidation and strategic partnerships within the industry will likely shape the market's future dynamics.

Snapshot img

Diesel Exhaust Fluid Market Size 2025-2029

The diesel exhaust fluid (DEF) market size is forecast to increase by USD 34.43 billion at a CAGR of 17.8% between 2024 and 2029.

The market is experiencing significant growth, driven primarily by the increasing production of vehicles that comply with stringent emissions regulations. These regulations, which aim to reduce nitrogen oxide (NOx) emissions, have led to the widespread adoption of Selective Catalytic Reduction (SCR) technology, which utilizes DEF to convert NOx into harmless nitrogen and water. However, the market faces challenges as well. The decrease in demand for diesel engine vehicles, due in part to the growing popularity of electric and hybrid alternatives, poses a threat to the market's growth. Additionally, the high cost of DEF and the infrastructure required to distribute and store it effectively present significant challenges for market participants.
Despite these obstacles, opportunities exist for companies to capitalize on the growing demand for cleaner diesel engines and to innovate in areas such as cost-effective production and distribution solutions. The market's strategic landscape is shaped by these key drivers and challenges, offering opportunities for companies to differentiate themselves and gain a competitive edge.

What will be the Size of the Diesel Exhaust Fluid (DEF) Market during the forecast period?

Request Free Sample

The market continues to evolve, driven by the ongoing need for emissions compliance and the integration of advanced exhaust aftertreatment systems in various sectors. OFF-HIGHWAY VEHICLES and ON-HIGHWAY VEHICLES, including diesel engines in agriculture, construction, and transportation, rely on DEF for Selective Catalytic Reduction (SCR) technology to reduce Nitrogen Oxides (NOx) emissions. DEF consumption is a critical component of emission control systems, with DEF filters, tanks, and injection systems ensuring the efficient use of DEF in SCR systems. The market dynamics are shaped by regulatory requirements, such as Euro Standards and EPA regulations, which mandate NOx reductions and DEF usage.
The DEF market is a dynamic and complex ecosystem, with continuous unfolding and evolving patterns shaping its future.

How is this Diesel Exhaust Fluid (DEF) Industry segmented?

The diesel exhaust fluid (def) industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Vehicle Type

  Commercial vehicles
  Non-road vehicles
  Passenger vehicles
  Trains


Packaging

  Bulk
  Cans and bottles
  IBCs and drums


Component

  Selective catalytic reduction (SCR) catalyst
  Diesel exhaust fluid (DEF) tank
  Diesel exhaust fluid (DEF) injector
  Diesel exhaust fluid (DEF) supply module
  Diesel exhaust fluid (DEF) sensor


End-user

  OEM
  Aftermarket


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    Egypt
    KSA
    Oman
    UAE


  APAC

    China
    India
    Japan


  South America

    Argentina
    Brazil


  Rest of World (ROW)

By Vehicle Type Insights

The commercial vehicles segment is estimated to witness significant growth during the forecast period.

The market is driven by the extensive use of diesel engines in commercial vehicles, particularly heavy-duty trucks, buses, coaches, and minibuses. In 2024, the commercial vehicles segment accounted for the largest share of the market due to stringent emissions regulations, such as Euro standards, mandating the use of DEF in Selective Catalytic Reduction (SCR) systems for diesel engines. SCR technology is crucial for reducing Nitrogen Oxides (NOx) emissions, ensuring compliance with environmental regulations. The DEF market dynamics are shaped by various factors, including DEF consumption, system integration, and monitoring. DEF is a critical component of the SCR system, which converts NOx emissions into harmless nitrogen and water.

DEF storage and handling are essential aspects of the DEF system, requiring proper maintenance and quality assurance to ensure optimal performance. DEF market trends include advancements in DEF technology, such as DEF heating systems and DEF dosing and injection systems, which enhance fuel efficiency and improve emissions control. DEF alternatives, such as AdBlue, are also gaining popularity due to their cost-effectiveness and ease of use. The DEF supply chain is a critical factor in market dynamics, with logistics and distribution playing a significant role in ensuring the availability and accessibility of DEF to consumers. The DEF market is influenced by various industry trends, including the increasing use of diesel engines in on-highway and off-highway vehicles, such as agric