Procurement Market Intelligence Report
Diesel Fuel
Sourcing Guide & Market Intelligence
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Diesel Fuel Global Overview
Definition
Summary
Diesel fuel is a fractional distillate of petroleum fuel oil that offers better fuel economy than gasoline. There are various applications for diesel fuel, including transportation, farming, off-road mining, construction, and logging applications. Moreover, diesel fuel can be used in an array of gas-powered machinery.
This Report Includes:
- Petroleum Diesel
- Synthetic Diesel
Not in this Report:
- Biodiesel
- Gasoline
- Kerosene
Global Diesel Fuel Procurement Trends
Discover the top international trends affecting procurement in the global Diesel Fuel market.
Warning Trends
Tariffs on fuel additives, lubricants, and anti-corrosive materials to increase costs in the sector
- On August 1, the Trump Administration finalized sweeping tariffs on most major US import partners, in addition to the already announced 25.0% and 35.0% tariffs on Mexico and Canada, and a 10.0% tariff on energy imports from Canada. According to the Energy Information Administration, Canada and Mexico account for 71.2% of US crude oil imports, 35.7% of US petroleum product imports, and 99.6% of US natural gas imports.
- These tariffs will increase both the cost of importing fuel additives, lubricants, and anti-corrosive materials and the cost of sourcing primary inputs necessary for making these products, affecting both international and domestic suppliers. However, reduced oil and gas demand tied to higher tariffs and a possible economic slowdown may counteract some of the tariff price increases in this market.
- Tariffs on steel and aluminum and falling oil prices are also increasing vendor risk for upstream suppliers in the sector; according to the New York Times, tariffs on steel have pushed up the cost of new oil and gas wells by 10.0% to 20.0%. According to S&P Global, oil country tubular goods, made from steel, are anticipated to rise 15.0% in price with the increase in tariffs, and because these expenses account for 8.0% to 10.0% of drilling and completion costs, the fuel additives, lubricants, and anti-corrosive materials supply chain will see increased risk of disruption.
Neutral
Crude oil prices dip, but natural gas and fuel prices remain volatile in 2025
- Oil prices have been falling with the introduction of higher tariffs and the predicted decline in global demand. The OPEC+ group of countries also announced they would be unwinding production cuts and increasing their collective output target for May by 411,000 barrels per day.
- Trade wars, ongoing conflict between Hamas and Israel, and general unrest in the Middle East are causing uncertainty surrounding oil prices, which has led to volatility in prices. In the third week of May 2025, crude oil prices hit $63.67 per barrel, but volatility remains as geopolitical concerns remain.
- Natural gas prices rallied early in 2025 with colder-than-usual temperatures in the United States and high demand, topping out at $4.68/MMBtu in March. Prices have since fallen with the onset of trade wars and weakening demand projections to $3.64/MMBtu in the third week of May 2025.
- The national average of gasoline prices has been rising slightly due to refinery maintenance/outages and blending issues, hitting a national average of $3.15 per gallon in the third week of May 2025. However, gasoline futures have been volatile, falling due to fears of oversupply and deepening concerns about weakening demand with tariffs, but rising after trade deals.
Global Diesel Fuel Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 China | 6,580 |
| #2 India | 2,925 |
| #3 Europe | 2,610 |
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Geography Drilldown - US, Canada & Europe
Average Cost of Diesel Fuel
United States
2026 Market Pricing$3.50 to $X.XX
per gallonCanada
Europe
Average Price
Prices in the Diesel Fuel market range from $3.50 to $X.XX, depending on Location, Sulfur Content, Cetane Number (CN)) and Specialization. For example, lower prices are associated with Southeast ($3.20 to $4.55), Southwest ($3.25 to $4.60) and Areas with low local and state taxes, whereas higher prices are associated with West ($3.25 to $6.40), Mid-Atlantic ($3.30 to $5.30) and Areas with high local and state taxes.
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Diesel Fuel Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Diesel Fuel market, prices in the US have declined -13.2% from 2022 to 2025. and --2.3% in Europe.
United States (2022-2025)
Canada (2021-2024)
Compound Annual Growth Rate
Europe (2022-2025)
Compound Annual Growth Rate
Wondering where prices are heading?
Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Diesel Fuel
Total cost of ownership is Low in the Diesel Fuel market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Duties & Taxes may raise the total cost of ownership unexpectedly.
Negotiated Before
Transportation
Billed During
Storage
Unforeseen
Duties & Taxes
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -0.1 in the United States. Buyer power is most positively impacted by Recent Developments. It is most negatively impacted by Forecast Price Trend. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Canada
Europe
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Very High, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Oil Pipeline Transportation Providers
- Oil Drilling & Gas Extraction Firms
- Mining, Oil & Gas Machinery Manufacturers
2nd
Tier Suppliers
- Oil & Gas Pipeline Construction Firms
- Oil & Gas Field Service Providers
Biggest Diesel Fuel Suppliers in the US by Revenue
The largest Diesel Fuel vendors by revenue in the US are Petroleum Traders Corporation, Valero Energy Corp and Marathon Petroleum Corp. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Bp Plc | Global | LONDON | >10,000 | 10-15 | ||||
| Conocophillips Co | Global | HOUSTON, TX | 1,001-10,000 | 10-15 | ||||
| Exxon Mobil Corporation | Global | SPRING | >10,000 | 15-20 | ||||
| Royal Dutch Shell Plc | Global | LONDON | >10,000 | 15-20 | ||||
| Chevron Corp | Global | HOUSTON, CA | >10,000 | 15-20 | ||||
| Valero Energy Corp | Global | SAN ANTONIO, TX | 1,001-10,000 | 5-10 | ||||
| HF Sinclair Corporation | Global | DALLAS, TX | 1,001-10,000 | 5-10 | ||||
| Marathon Petroleum Corp. | FINDLAY | >10,000 | < 5 | |||||
| Enterprise Products Partners L.P. | National | HOUSTON, TX | 1,001-10,000 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Diesel Fuel market is 2.6% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Purchases. The cost trend for this component is falling, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Buyers must stay current with evolving EPA regulations and emissions standards to ensure that purchased fuel meets the requirements for its intended use.
Although the high level of market share concentration limits suppliers’ incentives to negotiate on price, diesel is relatively homogenous across suppliers, so buyers can easily switch suppliers if needed. As a result, there is still intense competition in the market, which benefits buyers greatly.
Despite significant supply chain risk, diesel fuel manufacturers have a moderate financial risk on average. The extent to which suppliers can adjust diesel fuel prices when input costs are fluctuating is limited, thus threatening profitability and limiting the potential for price negotiations.
Supply chain risk in the market for diesel fuel is high, thus fostering a high likelihood of market price spikes.
The United States is a net importer of diesel fuel, meaning it imports more than it exports. US buyers seeking to acquire diesel fuel may have to pay higher prices due to import tariffs.
Supplier Information
Bp Plc
Bp Plc is a public company operating globally in the manufacturing, manufacturing and finance and insurance sectors. The company's offerings include lubricating oils, jet fuel, diesel fuel, gasoline, bunker fuel. Founded in 1909, the company is currently headquartered in London, United Kingdom with an estimated... Subscribe to learn more
Conocophillips Co
Conocophillips Co is a public company operating globally in the mining and manufacturing sectors. The company's offerings include diesel fuel, bunker fuel, propane and butane. Founded in 1875, the company is currently headquartered in HOUSTON, Texas, United States of America with an estimated 9500 employees.... Subscribe to learn more
Chevron Corp
Chevron Corp is a public company operating globally in the manufacturing and finance and insurance sectors. The company's offerings include lubricating oils, synthetic resins, jet fuel, diesel fuel, gasoline. Founded in 1879, the company is currently headquartered in SAN RAMON, California, United States of... Subscribe to learn more
Exxon Mobil Corporation
Exxon Mobil Corporation is a public company operating globally in the mining, manufacturing, manufacturing and finance and insurance sectors. The company's offerings include refining catalysts, plasticizers, paraffins, lubricating oils, synthetic resins. Founded in 1999, the company is currently headquartered... Subscribe to learn more
Royal Dutch Shell Plc
Royal Dutch Shell Plc is a public company operating globally in the manufacturing, manufacturing, finance and insurance and other services (except public administration) sectors. The company's offerings include refining catalysts, lubricating oils, jet fuel, diesel fuel, gasoline. Founded in 1907, the company... Subscribe to learn more
HF Sinclair Corporation
HF Sinclair Corporation is a public company operating globally in the manufacturing sector. The company's offerings include paraffins, diesel fuel and biodiesel. Founded in 1947, the company is currently headquartered in DALLAS, Texas, United States of America with an estimated 3522 employees. Subscribe to learn more
Valero Energy Corp
Valero Energy Corp is a public company operating globally in the mining and manufacturing sectors. The company's offerings include diesel fuel, gasoline, bunker fuel, ethanol, propane. Founded in 1980, the company is currently headquartered in SAN ANTONIO, Texas, United States of America with an estimated... Subscribe to learn more
Enterprise Products Partners L.P.
Enterprise Products Partners L.P. is a midstream natural gas and crude oil pipeline company. It owns and operates natural gas liquids-related businesses of Enterprise Products Company and provides midstream energy services to producers and consumers of natural gas, NGLs, crude oil, petrochemicals, and refined... Subscribe to learn more
Marathon Petroleum Corp.
Marathon Petroleum Corporation is an energy company engaged in downstream, midstream, and renewable energy. It organizes its business into three segments: the Refining & Marketing segment, which refines crude oil and other feedstocks at our refineries in the Gulf Coast, Mid-Continent, and West Coast regions;... Subscribe to learn more
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Procurement Management KPIs for the Diesel Fuel Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Net Working Capital (NWC) and On-Time Delivery (OTD). Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Accuracy and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Net Working Capital (NWC) |
|
Current assets Current liabilities |
Net working capital represents a company’s liquidity. Net working capital can be used to determine a company’s ability to fund current operations and invest in the business. |
| On-Time Delivery (OTD) |
|
Number of deliveries Number of on-time deliveries |
The on-time delivery rate represents the percentage of orders that are delivered on time. The on-time delivery rate can be used to determine the likelihood of a delayed delivery. |
|
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Value-Added Services
What incentives are available if I bundle my purchase with a complementary product?
What are your current production volumes of No. 1 diesel? What are your projected fuel product volumes in the next three years?
Price
What impact would a jump in crude oil prices have on your revenue and profit?
How many suppliers do you currently source crude oil from?
Regulation
Do your operations meet the EPA's 2014 Clean Diesel Fuel Program requirements?
How has the high rate of regulatory change impacted your revenue and profit?
The ultimate prep for procurement negotations
View all 26 negotiation questions for this category when you subscribe.
Diesel Fuel RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe their organization and the industry or industries in which they operate.
Buyers should state the types of vehicles and engines that require diesel fuel.
Statement Of Need
Buyers should indicate the grade, sulfur content, and fuel specifications.
Buyers should state any other fuel products they wish to contract alongside diesel fuel.
Project Budget
Buyers should state their maximum budget for the contract.
Buyers should request a detailed breakdown of how price differentials are determined for fuel delivered to different locations based on state taxes and delivery distance.
The RFP process made easy
Find out how you can access RFP templates for 800+ procurement categories to start writing better, more consistent RFPs.
We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
