Gasoline, Diesel, Jet Fuel, etc.
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Before You Watch Our Lecture
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Our Lecture
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Additional Resources
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Fast Facts About
Gasoline, Diesel, Jet Fuel, etc.
Petroleum-based fuels like gasoline, diesel, jet fuel, and shipping fuel are all made from crude oil through the process of refining and make up almost 90% of the world’s transportation energy. These fuels contribute significantly to air pollution and climate change.
Petroleum-based fuels are high energy density fuels, both by weight and by volume, which makes them valuable for transportation (where you are carrying your fuel around with you). Because of this, it is challenging to replace them with other options (e.g., electricity, biofuels) as we try to decarbonize the transportation sector.
Crude oil is a global commodity, but local and regional fuel prices vary widely based on taxes, subsidies, and air pollution regulations. Global usage of gasoline, diesel, and jet fuel has increased significantly over the past 40 years (65%, 132%, and 91% respectively). There has been a leveling off in consumption of these fuels in recent years, but it is uncertain when we will actually see a peak in global demand.
Oil Is the Primary Transportation Fuel in the World and the US
Note: The natural gas category is not vehicles running on natural gas. It is natural gas being used to move other natural gas through pipelines by running compressors.
Global Fuel Usage
Spotlight on California
California saw a 45% decrease in motor gasoline sales to end users between 2015 and 2021 due to fuel policies, electric vehicles, and changes in behavior (e.g., remote work).
California, the 3rd largest gasoline market in the world after the rest of the US and China, refines its oil in-state. Some of California’s refineries are shifting to producing renewable fuels rather than oil-based fuels in response to the drop in gasoline demand.
US EPA Regulates Gasoline to Reduce Air Pollution
US gasoline regulations require certain fuel characteristics that reduce smog (NOx & VOCs), carbon monoxide, toxic pollutants, and sulfur dioxide.
Reformulated Gasoline (RFG)
Burns cleaner and reduces smog and toxic pollutants
Required in cities that don't meet air quality standards, but also used voluntarily by others
Used in 17 US states and DC
~30% of US gasoline sold
Oxygenates
Fuel additives that contain oxygen (currently ethanol)
Reduce wintertime carbon monoxide emissions that fall short of National Ambient Air Quality Standards (NAAQS)
Required in <5% of US gasoline; however, ethanol is added to 95% of fuel to meet renewable fuel standard requirements
Low Reid Vapor Pressure (RVP)
Reduces summertime gasoline evaporation to reduce volatile organic compound (VOC) emissions
Required at retail gasoline stations during summer in the US
Ultra Low Sulfur Gasoline
Lowers air pollution
As of 2017, refiners required to supply 97% lower sulfur content than in 2004
World Fuel Prices and Taxes
Crude oil is a global commodity, so the regional range in prices is mostly based on taxes, which vary significantly by region, both within a country and between countries.
Components of Fuel Prices

Gasoline Taxes* by Country** (USD)
Highest Taxes:
Netherlands $4.13/gallon
Greece, Italy, Israel $4.01/gallon
Denmark $3.89/gallon
Lowest Taxes:
US: $0.57/gallon
Turkey: $1.06/gallon
Canada: $1.21/gallon
Diesel Taxes* by Country** (USD)
Highest Taxes:
Israel $4.28/gallon
Switzerland, Italy $3.59/gallon
United Kingdom $3.48/gallon
Lowest Taxes:
Colombia: $0.26/gallon
US: $0.57/gallon
New Zealand: $0.76/gallon
*Not all countries tax fuel; in fact, exporting countries often subsidize it
**Only 35 countries were included in this dataset; notably Russia and China were not included
US Fuel Taxes by State
Highest Gasoline Taxes:
Pennsylvania: 70 cents/gallon
Lowest Gasoline Taxes:
Alaska: 31 cents/gallon
Highest Diesel Taxes:
Pennsylvania: 90 cents/gallon
Lowest Diesel Taxes:
Alaska: 37 cents/gallon
In the US, fuel taxes are often used to fund transportation infrastructure, including roads and bridges
Reasons for Differing Regional Fuel Prices in the US
- Proximity to fuel supply
- Supply disruptions (e.g., hurricanes)
- Competition in the local market
- Differing regional quality and additive requirements (e.g., CA has high standards for cleaner burning fuels and higher gasoline prices)
- Regional environmental regulations
- State and local taxes
Drivers and Barriers for Reducing the Use of Oil for Transportation
Drivers
- Increasing impacts from climate change
- Geopolitics and impacts on oil price and availability
- Air pollution standards
- Increasing desirability and availability of electric vehicles
- Potential development of sustainable aviation fuels
Barriers
- Historical investment in global oil infrastructure
- Gasoline and diesel are poorly priced globally; they do not reflect the full social costs of using them
- Hard to decarbonize transport modes may continue to use oil (long-haul trucking, airplanes, ships)
- Technological, political, and behavioral barriers to electrified transportation (range for passenger cars, long haul transport)
Climate Impact: High

- Petroleum-based fuels are major contributors of GHG emissions
Environmental Impact: High

- Air pollution from NOx, SOx (→ acid rain), ozone, particulate matter (PM) (→ smog)
- Land and water pollution
- Lead has significant health impacts and environmental justice issues and is still being used as an additive in small aviation (avgas)
Before You Watch Our Lecture on
Gasoline, Diesel, Jet Fuel, etc.
We assign videos and readings to our Stanford students as pre-work for each lecture to help contextualize the lecture content. We strongly encourage you to review the Essential readings and videos below before watching our lecture sections on Gasoline, Diesel, Jet Fuel, etc. Include selections from the Optional and Useful list based on your interests and available time.
Essential
- Fill It With Regular: AAA Finds Millions of Drivers Waste Money on Premium Gas. NPR. September 23, 2016. (2 pages)
AAA study findings that using premium gasoline in a car that only requires regular results in additional air pollution, higher costs, and provides no benefit to the operation of the vehicle.
The Essential Items Below Are Also Assigned for the Oil Lecture
- Crude Basics. Valero Refining 101 Series. October 2, 2020. (7 min)
How crude oil differs and where different grades are located worldwide. - Distillation Basics. Valero Refining 101 Series. October 2, 2020. (4 min)
Explanation of distillation, a key process in oil refining. - Refinery Configurations. Valero Refining 101 Series. October 2, 2020. (6 min)
Detailed explanation of oil refinery equipment and processes. - Neighbors of the Fence. The Bitter Southerner. May 1, 2015. (18 pages)
In depth article about the challenges facing oil refineries and fenceline communities in Baton Rouge, LA.
The Essential Items Below Are Also Assigned for the Biofuels Lecture
- The Smelly, Greasy Truth About How Sustainable Aviation Fuel Is Made. Canary Media. January 12, 2023. (3 pages)
A truck driver dumpster-dives for used cooking oil in an effort to reduce emissions from commercial aviation. - Biden Team Sets out Path For Ethanol Aviation Fuel Subsidies. Reuters. April 30, 2024. (1 page)
Briefly describes key aspects of Biden's sustainable aviation fuel (SAF) subsidy program.
Optional and Useful
- $4.6 Billion Plant in South Africa Will Make ‘The Fuel of the Future’. CNN. July 25, 2023. (1 page)
A nice overview of ammonia's current and potential uses and the process to make green ammonia. - The Race Is on to Build the World’s First Ammonia-Powered Ship. Canary Media. November 10, 2022. (3 pages)
Describes ammonia's potential—and challenges—as a marine fuel. - History. California Air Resources Board. 2022. (2 pages)
A history of California's pioneering efforts to reduct air pollutants. - Transportation Fuels Trends, Refinery & Market Changes, and Expanded Use of Renewables: Presentation by Gordon Schemp
(pages 21-72). California Energy Commission. September 16, 2020. (50 slides)
Presentation on California transportation fuels, refineries, and markets, and renewable fuel developments.
The Optional and Useful Item Below Are Also Assigned for the Oil Lecture
- More Stringent Marine Sulfur Limits Mean Changes for U.S. Refiners and Ocean Vessels. EIA Today in Energy. February 4, 2019. (1 page)
Requiring lower sulfur fuels for ocean vessels to reduce air pollution.
Our Lecture on
Gasoline, Diesel, Jet Fuel, etc.
Our Stanford University Understand Energy course lecture on Gasoline, Diesel, Jet Fuel, etc. is comprised of sections from our Oil and Energy for Transportation lectures. We strongly encourage you to watch all of the designated lecture sections below to gain important context around Gasoline, Diesel, and Jet Fuel and the roles they play in our current transportation energy system. For a complete learning experience, we also encourage you to watch / read the Essential videos and readings we assign to our students before watching the lecture.

Presented by: Diana Gragg, PhD; Core Lecturer, Civil and Environmental Engineering, Stanford University; Explore Energy Managing Director, Precourt Institute for Energy
Recorded on: October 11, 2023 and October 25, 2023 Duration: 44 minutes
Table of Contents
(Clicking on a timestamp will take you to YouTube.)
Oil Lecture
47:33 Oil Refining (Downstream)
Additional Resources About
Gasoline, Diesel, Jet Fuel, etc.
Government and International Organizations
- International Energy Agency (IEA) Advanced Motor Fuels
- US Energy Information Administration (EIA) Gasoline Explained, Diesel Fuel Explained
- US Energy Information Administration (EIA) Gasoline and Diesel Fuel Update, This Week In Petroleum
- US Energy Information Administration (EIA) Today in Energy Gasoline, Jet Fuel, Liquid Fuels
- US Environmental Protection Agency (EPA) Gasoline Standards, Diesel Fuel Standards, Renewable Fuel Standard Program
- US Federal Aviation Administration (FAA) Aviation Gasoline
Fast Facts Sources
Global Fuel Usage: World 2021 (Petroleum and Other Liquids, EIA).
Transportation Consumption by Fuel: World 2012 (Today in Energy, EIA).
Spotlight on California: 2015-2021 (Petroleum and Other Liquids, EIA).
Gasoline and Diesel Taxes and Prices: 2023 (International Price Comparisons, Australian Institute of Petroleum).