U.S. consumption of diesel fuel amounted to a four-week rolling average of around 3.46 million barrels per day in the first week of June 2025. In the period of consideration, diesel consumption in the country reached its peak in February 2022.

Gasoline consumption in the United States transportation sector amounts to around 8.5 million barrels per day. In 2024, gasoline and distillate fuel oil (diesel) consumption decreased. Gasoline consumption is close to three times higher than diesel consumption, the latter amounting to less than three million barrels per day. Energy demand in the transportation sector The transportation sector, which includes public and personal transportation by road vehicles, airplanes, trains and ships, is the second-largest energy-consuming sector in the United States. The majority of energy consumed in this sector is derived from petroleum or crude oil. However, thanks to government incentives, annual biofuel consumption in the U.S. has also increased to over 1.9 billion gallons. Consumption of motor fuels remains steady amid lower car sales Distillate fuel can be used as either fuel oil or diesel fuel. The figures indicate that gasoline is still the most popular transportation fuel in the U.S. Gasoline and diesel consumption has stayed relatively constant over the last two decades, whereas U.S. car sales have notably decreased since 2014.

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

Browse TOC and LoE with selected illustrations and example pages of diesel fuel market

Request a FREE sample now!

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

For more insights on the diesel fuel market share of various regions Request for a FREE sample now!

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

Request for a FREE sample and Get more information on the market contribution of various end-user industries

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

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.

Crude oil is the greatest cost component determining diesel retail prices in the United States. In February 2025, 49 percent of the diesel retail price was set by crude oil costs. That month, one gallon of diesel sold for an average of 3.68 U.S. dollars. U.S. diesel prices have generally stagnated in early 2025. Fuel consumption remains high despite higher prices Diesel and gasoline prices have experienced significant fluctuations over the past decades. In 2024, the average gasoline price stood at 3.3 U.S. dollars per gallon, a decrease from the 2022 peak but still higher than early 2000s levels. Despite these changes, U.S. gasoline consumption has remained high, averaging around 8.5 million barrels per day in 2024, with seasonal variations affecting demand. Tax impact on fuel costs across states Taxes play a significant role in determining fuel prices, with state-level differences creating notable price variations across the country. As of 2023, the average state tax for gasoline was 30.5 U.S. cents per gallon, while diesel faced a slightly higher average tax of 33.15 U.S. cents. These taxes contribute to the overall retail price and are often reinvested in road infrastructure. California, for instance, imposes some of the highest gasoline taxes in the country, reaching 68.1 U.S. cents per gallon in January 2024, which significantly impacts the state's fuel prices.

The size of the US Propane Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of > 5.00% during the forecast period. Propane is made up of hydrogen and carbon atoms. It’s well known for reduced environmental effect as compared to other fossil fuels. Propane market in the United States has been experiencing steady growth due to increased demand from home, business, farm and factory uses. Propane is commonly used for home heating, water heating, and cooking, particularly in rural locations where natural gas infrastructure is limited. It is also popular in commercial applications, where it is used for space heating, cooking, and backup power generation. Propane's status as a cleaner-burning fuel, generating less pollutants than gasoline, diesel, and coal, is encouraging its use as industry strive to meet stricter environmental laws and minimize their carbon footprints. Furthermore, the development and acceptance of renewable propane—derived from sustainable sources such as biomass and waste—is gaining traction, providing the same benefits as conventional propane but with a substantially lower carbon footprint. The use of propane as a fuel for vehicles is also increasing due to lower costs and lower greenhouse gas emissions compared to traditional fuels, which is contributing to the growth of the market. Recent developments include: December 2022: Suburban Propane Partners, L.P. acquires assets for the production of renewable natural gas ("RNG") from Equilibrium Capital Group. The collaboration was developed to serve as a long-term growth platform for the identification, development, and management of further RNG projects, resulting in the acquisition of two biogas facilities that were already in operation., August 2022: AmeriGas has just acquired a forklift cylinder exchange in the state of Florida. This purchase will allow the company to increase its presence and reach in the rapidly expanding Florida market. AmeriGas will be able to continue its expansion in South Florida because of the outstanding opportunity presented by this acquisition.. Key drivers for this market are: Increase in Demand from Residential and Transportation Sectors, Demand in the Petrochemical Industry. Potential restraints include: Harmful Effects of Propane at Higher Concentrations. Notable trends are: The Residential Segment to Dominate the Market.

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..

The consumption of gasoline in the United States amounted to some 8.88 million barrels per day in June 2025. In the period of consideration, gasoline consumption reached its highest four-week average in July 2024. Consumption is generally highest in the summer months. Gasoline production and sales The U.S. reported a decrease in domestic motor gasoline refinery production in recent years, although gasoline sales remained at all-time highs. Meanwhile, in 2024, real gasoline prices for end users fell to their lowest value in four years due to downward pressure on crude oil prices. Gasoline vs diesel Both diesel and gasoline are derived from crude oil. Gasoline, however, undergoes a more extensive refining process, resulting in a more volatile compound compared to diesel. This characteristic accelerates the combustion of gasoline, yielding greater horsepower in practical applications. Diesel's advantage lies in its slower burn, which makes it especially fuel efficient and more favorable for heavy-duty vehicles. The average consumption of diesel fuel in the United States stood at 3.46 million barrels per day in June 2025.

The United States Diesel Genset Market was valued at USD 2.13 Billion in 2023 and is expected to reach USD 2.72 Billion by 2029 with a CAGR of 4.01% during the forecast period.

Companies in the Gasoline and Petroleum Bulk Stations industry manage bulk storage tanks and terminals for crude oil and petroleum products including gasoline, diesel fuel, fuel oil and liquid petroleum gases (LPGs). These bulk stations are often located near major refineries, ports and industrial centers to quickly and efficiently receive product and unload it to customers, playing an important role in the crude oil and petroleum products supply chain. Operators can be as large as a multitank facility with the capacity to store millions of gallons of product or as small as a single-tank outpost that supplies gasoline to only a handful of retail gas stations. The industry's performance is closely linked to the supply and demand for petroleum and petroleum products. This has caused industry revenue to be volatile in recent years, as collapsing oil prices caused a sharp drop in the prices of industry products amid the pandemic in 2020. The industry recovered in 2021 and 2022 as the world price of crude oil skyrocketed as demand rose coming out of the pandemic while supply was low, in part thanks to the war in Ukraine. Industry revenue has increased at a CAGR of 1.5% to $732.3 billion over the past five years, including a decline of 0.8% in 2024 alone as oil prices have stabilized. Moving forward, industry revenue is set to fall as oil prices decline. This will be tempered by economic growth. The volume of oil and petroleum products supplied by downstream markets is forecast to expand, which will lead to significant investment in distribution infrastructure. This will expand the markets that bulk station operators are able to serve and stimulate downstream demand. However, industry revenue is set to decrease at a CAGR of 1.4% to $681.3 billion over the next five years.

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 average for 2022 based on 190 countries was 145.53 thousand barrels per day. The highest value was in the USA: 4025.57 thousand barrels per day and the lowest value was in Montserrat: 0.09 thousand barrels per day. The indicator is available from 1980 to 2023. Below is a chart for all countries where data are available.

Diesel Market Outlook

The global diesel market has demonstrated robust growth, with its market size reaching approximately USD 625 billion in 2023, and is projected to expand to USD 890 billion by 2032. This remarkable growth trajectory is underpinned by a compound annual growth rate (CAGR) of 4.1%. One of the primary growth factors driving the diesel market is the increasing demand for diesel in the transportation sector, where it remains a fuel of choice due to its energy efficiency and widespread availability. Additionally, the ongoing advancements in diesel engine technology that enhance fuel efficiency and reduce emissions further bolster market growth.

A significant growth factor for the diesel market is the rising industrialization in emerging economies. As countries in Asia, Africa, and Latin America continue to industrialize, the demand for diesel as a primary fuel source in manufacturing processes and machinery operations has increased significantly. Industries such as construction and mining rely heavily on diesel-powered equipment due to its reliability and cost-effectiveness. Moreover, as these economies expand, the need for infrastructure development, which is inherently diesel-intensive, continues to escalate, fueling the demand for diesel even further.

The integration of biodiesel with conventional diesel products is another pivotal growth factor. With increasing regulatory pressure to reduce carbon emissions, many countries are adopting policies that promote the use of biodiesel blends. Biodiesel, derived from renewable sources such as vegetable oils and animal fats, can be blended with petroleum diesel to create a more sustainable fuel option. This blend not only reduces the carbon footprint but also mitigates the dependence on non-renewable resources. As governments worldwide enforce stricter environmental regulations, the adoption of biodiesel is expected to rise, positively influencing the diesel market's growth trajectory.

Technological advancements in diesel engine efficiency and emission control technologies are also playing a critical role in stimulating market growth. Modern diesel engines are becoming more efficient, providing higher fuel economy and lower emissions than their predecessors. Innovations such as advanced turbocharging, common-rail fuel injection systems, and selective catalytic reduction (SCR) technologies have significantly improved diesel engines' performance. These advancements not only meet the stringent emission standards but also cater to the growing consumer demand for fuel-efficient vehicles, thereby driving the diesel market forward.

In terms of regional outlook, Asia Pacific dominates the diesel market, driven by the burgeoning transportation sector and rapid industrial growth in countries like China and India. These nations have witnessed significant increases in vehicle sales, especially diesel-powered commercial vehicles, contributing to regional market expansion. North America and Europe follow, with substantial demand from the automotive and industrial sectors. In North America, the focus on infrastructure development and freight transportation sustains the market, while in Europe, the emphasis on energy efficiency and technological innovation drives diesel consumption. The Middle East & Africa region, with its vast oil reserves and growing industrial activities, also presents promising growth opportunities, albeit at a slower pace compared to other regions.

Fuel Type Analysis

The diesel market is segmented by fuel type into petroleum diesel, biodiesel, and synthetic diesel, each offering unique characteristics and applications. Petroleum diesel, the most traditional and widely used form of diesel fuel, continues to hold a significant share of the market due to its established distribution networks and lower cost compared to alternatives. The infrastructure for petroleum diesel is well-developed, making it readily available and convenient for consumers and industries alike. Its widespread use in transportation, power generation, and industrial applications underscores its enduring relevance in the diesel market.

Biodiesel, a renewable alternative, is gaining traction as environmental consciousness and regulatory mandates push for cleaner fuel options. Biodiesel can be produced from various feedstocks, including vegetable oils, animal fats, and recycled grease, offering a more sustainable and eco-friendly alternative to petroleum diesel. The integration of biodiesel blends is particularly appealing as it reduces greenhouse gas emissions, enhances lubrication, and can often be used in existing di

The size of the US Oil and Gas Downstream Refining Industry market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 0.92">> 0.92% during the forecast period. The downstream refining business for oil and gas serves as a very critical segment of the energy sector as it focuses strictly on refining and distributing petroleum products. That is, refining crude oil to products like gasoline, diesel, jet fuel, and petrochemicals, among others. Refined products continue to gain buoyancy as transportation needs increase and, likewise, as industrial activities increase; thus, U.S. refineries are undergoing adjustments to keep up with changes in the market. Advances in technology have also impacted refinery efficiency favorably. By streamlining processes and reducing the emission of pollutants, refineries are now effective units. Hydrocracking and catalytic reforming have been some of the sophisticated refining techniques that allow the production of high-quality fuels through facilities with a reduced environmental footprint. The presence of digital technologies and data analytics also improves better decision-making and maintenance practices, thus raising productivity even further. However, the industry is linked with volatility, because of crude oil price volatility, increasing regulatory scrutiny of emission standards, and increasing competition from renewable sources of energy. A move towards a low-carbon economy forces many refineries to explore alternative capacities in the production of biofuels and renewable diesel. Overall, the U.S. downstream refining industry finds itself on the cusp of change, with both the demand for the traditional petroleum products and an emerging demand for sustainability and newness for the market Recent developments include: Nov 2022: Chevron U.S.A. Inc., a subsidiary of Chevron Corporation, announced it had signed an agreement to acquire full ownership of Beyond6 LLC (B6) and its network of 55 compressed natural gas (CNG) stations across the United States from Chevron's current B6 co-owners, a subsidiary of Mercuria Energy Trading and B6 CEO Andrew West., Jan 2022: Airbus SE announced that it had commenced manufacturing aircraft from its US-based facility. All the aircraft manufactured at the location are expected to operate on a blend of renewable aviation fuel and conventional jet fuel. Airbus SE has taken this initiative in line with its goal of manufacturing zero-carbon-emitting aircraft by 2035.. Key drivers for this market are: Increasing Demand from Various End-user Industries. Potential restraints include: Higher Capital and Operational Cost. Notable trends are: Refining Sector to Register a Modest Growth.

North America Renewable Diesel Market size was valued at USD 13.91 Billion in 2023 and is projected to reach USD 23.9 Billion by 2031, growing at a CAGR of 7% from 2024 to 2031.

Government Rules and Incentives: Policies that support renewable energy sources and lower greenhouse gas emissions are important. Renewable fuel production and consumption are encouraged in North America by regulatory frameworks such as the Low Carbon Fuel Standard (LCFS) in California and the Renewable Fuel Standard (RFS) in the United States. Environmental Concerns: The demand for renewable fuels is being driven by a growing awareness of climate change and the need to minimise carbon emissions. Renewable diesel has a less carbon footprint than conventional diesel since it is made from organic feedstocks like vegetable, animal, and waste oils. Crude Oil Price Volatility: Changes in the price of crude oil can have an effect on how competitive renewable diesel is. Renewable diesel becomes more financially feasible under high crude oil prices because it offers a reliable substitute with less price volatility. Infrastructure for the Production, Distribution, and Consumption of Renewable Fuels: Investments in this area are essential to the expansion of the market. The augmentation of production facilities and distribution networks for renewable diesel has the potential to improve market penetration and accessibility. Initiatives for Corporate Sustainability: A lot of businesses in a lot of different sectors are committed to sustainability, which includes cutting back on carbon emissions from their operations. This increases the need for cleaner alternative fuels like renewable diesel for fleets used in logistics and transportation. Technological developments: Better catalysts and process efficiency are two examples of how renewable diesel production technologies are advancing and how they might lower production costs and make renewable diesel more competitive with conventional diesel. Demand from Consumers for Sustainable Products: Transportation fuels are becoming more and more popular among consumers who want sustainable products. Companies who meet this need by providing renewable diesel as a sustainable fuel alternative stand to benefit from increased market share. Partnerships and Collaborations: Working together, stakeholders such as manufacturers of renewable fuel, feedstock suppliers, government organisations, and research centres, can spur innovation, lower obstacles, and hasten the expansion of the renewable diesel industry.

The global diesel fuel market, valued at $1,025.2 million in 2025, is projected to experience steady growth, driven by robust demand from the transportation sector, particularly within the automotive and railway industries. The market's Compound Annual Growth Rate (CAGR) of 4.4% from 2025 to 2033 indicates a continuous expansion, fueled by increasing industrialization and global trade, leading to higher freight transportation needs. The rising popularity of heavy-duty vehicles, especially in developing economies experiencing rapid infrastructure development, further boosts demand. Diesel fuel remains a preferred choice due to its high energy density and cost-effectiveness, although concerns surrounding environmental regulations and the push towards cleaner alternatives like biofuels and electric vehicles present a significant challenge. Segmentation reveals that #2 diesel fuel likely holds the largest market share due to its widespread usage in various applications, while the automotive segment is expected to dominate application-based segmentation, driven by the considerable number of diesel-powered vehicles worldwide. Key players like BP, Shell, and ExxonMobil, through their extensive distribution networks and technological advancements, are likely to maintain their dominant market positions. The market's geographical distribution is expected to be heavily concentrated in regions with extensive industrial activity and robust transportation networks, with North America, Europe, and Asia Pacific leading the charge. However, the market faces headwinds from stricter emission regulations globally, pushing manufacturers to adopt cleaner technologies. The increasing adoption of electric vehicles and alternative fuels, alongside fluctuating crude oil prices, introduces uncertainty. Government incentives and policies aimed at promoting cleaner alternatives exert downward pressure on diesel fuel consumption. Despite these challenges, the continued demand from developing economies and specific industrial sectors, coupled with ongoing improvements in diesel fuel technology focusing on emission reduction, is expected to mitigate these headwinds to some extent, ensuring a moderate but consistent growth trajectory for the foreseeable future. Strategic partnerships, technological innovation, and expansion into emerging markets are crucial factors for market players to maintain competitiveness and capture growth opportunities in this evolving landscape.

Diesel prices in the USA followed a largely upward trend during Q1 2025, with prices closing higher compared to the previous quarter despite some fluctuations in March. In January, prices rose due to increased heating fuel demand driven by winter storm Enzo and strong domestic consumption. However, warmer weather forecasts later in the month softened demand, overall market sentiment remained firm, supported by reduced inventories and refinery constraints. February saw a further price increase as cold temperatures in the Northeast intensified heating oil usage, and maintenance at key refineries tightened domestic supply.

Snapshot img

Diesel Fuel Retail Sales Market Size 2025-2029

The diesel fuel retail sales market is forecasted to grow by USD billion at a CAGR of 2.8% during the forecast period. Exact values for this market can be accessed upon purchasing the report.

The market is experiencing significant growth due to several key factors. One of the primary drivers is the increasing adoption of e-commerce and logistics, which has led to a surge in demand for diesel fuel to power delivery vehicles. Additionally, technological advancements in diesel engines have made them more efficient and environmentally friendly, making them an attractive option for consumers and businesses alike. However, the market is also facing challenges from stringent environmental regulations, which are driving up costs for diesel fuel producers and retailers. These regulations are leading to the development of alternative fuels and technologies, which could potentially disrupt the market in the future.
Overall, the market is expected to grow steadily over the next few years, driven by these key trends and challenges.

To access the full market forecast and comprehensive analysis, Buy Now

How is this market segmented?

The market is a significant segment of the global petroleum industry, characterized by economic fluctuations and evolving consumer preferences. With the increasing focus on reducing greenhouse gas emissions and mitigating climate change, the demand for diesel fuel is shifting towards more sustainable alternatives. Hybrid vehicles and electric vehicles are gaining popularity, leading to a decline in diesel sales. However, the transition to renewable energy is not an overnight process, and diesel will continue to play a crucial role in the energy mix. Economic factors, such as fuel prices and economic conditions, significantly impact the market. Regulatory pressures, including environmental regulations and carbon emissions targets, are driving innovation in engine oil, fuel additives, and lubricants to improve fuel efficiency and reduce carbon emissions.
The infrastructure development of fuel stations and investment in automation and customer experience are essential for profitability and staying competitive. The market is also influenced by the availability and adoption of alternative fuels, such as biodiesel and other renewable energy sources. The energy transition presents both opportunities and challenges for businesses in this sector, requiring a flexible business model and a commitment to sustainability. Overall, the market is an essential component of the global energy landscape, undergoing continuous change and adaptation to meet the evolving needs of consumers and the economy.

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in USD bn for the period 2025-2029, as well as historical data from 2019-2024 for the following segments:

Sales Channel

  Gasoline Stations
  Gasoline Stations with Convenience Stores
  Fuel Dealers


Geography

  APAC

    China
    India
    Japan


  Europe

    Germany
    UK
    Italy
    Spain


  North America

    Canada
    US


  South America & MEA

By Sales Channel Insights

The gasoline stations segment is estimated to witness significant growth during the forecast period.

The market is a significant sector within the global energy industry. According to the market is expected to experience steady growth due to the increasing demand for diesel fuel in various sectors such as transportation, construction, and power generation. Key factors driving this growth include the expanding industrial sector and the shift towards heavy-duty vehicles. Additionally, economic growth in developing countries is expected to boost demand for diesel fuel in the coming years. Market research firms also highlight the importance of supply-demand balance and government regulations in shaping the market dynamics.

Overall, the market is expected to remain a vital component of the global energy landscape.

Regional Analysis

The market experienced significant growth in the North American region in the year 2021, accounting for the largest market share. This region is expected to present lucrative opportunities for market participants in the upcoming years. Factors such as increasing transportation sectors and growing industrialization will significantly contribute to the market expansion in this region. Approximately 50% of the market growth is projected to originate from North America during the forecast period. The United States and Canada are the key markets for diesel fuel retail sales in North America. Market growth in this region is anticipated to be faster than in other regions due to the aforementioned factors.

Market Dynamics

Our diesel fuel retail sales market researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challeng

U.S. Renewable Diesel Market is poised for rapid growth, expanding from 99.42 million barrels size in 2024 to 922.39 million by 2030 at a 45% CAGR.

Fuel dealers have exhibited revenue growth as sales have remained relatively stable and oil and natural gas prices have fluctuated favorably. The pandemic disrupted demand for fuel from commercial and industrial operations as they shuttered or operated at reduced capacity. Oil prices plummeted amid the suspension of most travel and revenue plunged in 2020. Oil consumption from consumers quarantined at home helped stave off more severe losses, but this boon was dampened as most states were getting warmer through the height of stay-at-home ordinances. The Russia-Ukraine war caused oil prices to surge since early in 2022, but revenue has begun to normalize as production catches up. Since 2023, crude oil prices have steadily dipped as supply and demand imbalances improve. Revenue for fuel dealers is expected to climb at a CAGR of 6.7% to $49.3 billion through the end of 2025, including growth of 0.9% in 2025 alone. The magnitude of this growth is amplified by the fact that revenue plummeted in 2020, causing revenue to begin the period below traditional levels. Rising fuel prices raise dealers' purchasing costs. The short-term inflexibility of demand for heating oil and propane allows dealers to pass most of these increases on to downstream customers through price hikes that also lift revenue. Dealers endure external competition from natural gas and electric heating companies, though, so prices are often under pressure to remain low enough to encourage oil-based heating. Fuel dealers can't pass on all their heightened costs and profit compresses when oil prices swell. Moving forward, volatility in oil prices will pressure fuel dealers. Sales of fuel will remain inflexible since all buildings fitted with propane and heating oil systems will continue to rely on dealers, but the industry is fighting to maintain its customer base as more and more buildings are refitted with natural gas heating units. Natural gas extraction has climbed, causing prices to drop after they exploded in 2022. Volatile crude prices will exacerbate this trend since consumers are incentivized to switch heating systems if input prices swell. Revenue is expected to slump at a CAGR of 0.1% to $49.0 billion through the end of 2030.