4. Fuel Cost is Significantly Lower
Although car drivers in the United States may not realize it with the price per gallon for diesel fuel being higher than gasoline (it is lower in Europe), the overall fuel cost for kilowatt for diesel fuel runs between 30 to 50 percent lower than for gasoline powered engines. Although the fuel requires less work to refine than gasoline, the price per gallon of diesel in the United States is more dramatically impacted by the overall demand signal from consumers for the fuel. Since diesel powered automobiles are not as popular in the U.S. as in Europe, the oil refineries do not have as large of a demand signal to produce the fuel which helps drive the overall cost up. Even with this price difference; however, diesel remains the cheaper alternative for consumers.