Diesel Demand Evolves as Gasoline and Hybrids Rise in North American Context

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The automotive market has seen notable shifts in recent years. A clear drop in diesel passenger car registrations is accompanied by a rise in gasoline and hybrid models, a trend visible at fueling stations across various regions. This marks the first period since the pandemic when restrictions contributed to a broad decrease in fuel sales of all types. Diesel use in the province fell last year, even as economic activity picked up, hinting at a shift in consumer and fleet preferences.

According to the latest figures from the Strategic Petroleum Products Reserves Authority, from January to October 2023 around 470 gas stations in the region supplied up to 521,650 tonnes of diesel for automotive use, a decrease of 30,383 tonnes or 5.5 percent compared with the same period the previous year. This decline is especially meaningful given that diesel sales remain active, not fully recovering from the disruptions caused by the coronavirus in 2020. The current total sits approximately 10 percent below the pre pandemic level.

A diesel pump is shown in a typical service station setting. The image underscores the ongoing narrative of fuel mix changes and the resilience of diesel demand to some extent, even as it trends downward.

A different dynamic unfolds with gasoline 95, which managed to rebound from the collapse within a year and has continued growing. In the first ten months of the previous year, Alicante service stations moved 225,915 tonnes of this fuel, which is 8 percent higher than the same period in 2022 and as much as 23 percent above 2019 levels.

Records

These shifts play out on a larger stage as diesel engine market share erodes. The Federation of Mediterranean Service Stations and the Spanish Association of Petroleum Products Operators have noted these changes, highlighting a broader trend across major energy companies. The ongoing move away from diesel is shaping new market dynamics and influencing pricing, supply chains, and vehicle choices alike.

Car registrations in Alicante increased by 22.5 percent after at least three years

A trend that began before the pandemic evolved under the weight of restrictions implemented in many cities. These measures limited the circulation of older, more polluting models, intensifying the shift away from diesel. As a result, only 7.2 percent of all new passenger cars and SUVs sold in Alicante last year were diesel, with this figure continuing to fall. The province thus sees a shrinking diesel vehicle fleet as older units exit circulation.

In this context the main regional service stations association has operated for most of the year, and contrary to historic norms diesel pricing has risen above gasoline on occasion, reflecting volatility in energy markets and regional supply conditions.

An employee at a service station in Alicante is shown preparing to serve fuel, illustrating the practical realities behind these market changes.

Similarly, hybrids have remained a strong segment, with many of the vehicles sold in recent years featuring gasoline engines alongside hybrid powertrains, contributing to gasoline demand and overall changes in fuel mix.

Professional

The association that represents major Spanish oil companies points to another factor in the diesel sales dip, namely higher efficiency in new engines. Lower consumption per kilometer means fleets use less fuel, which is especially noticeable in professional transport fleets that account for a large share of diesel sales.

Beyond the mechanical factors, broader social trends also influence fuel demand. Remote work reduces daily commuting, public transport usage rises in some areas, and fuel prices respond to global events such as the war in Ukraine. Policy measures and subsidies from various administrations also shape consumer choices and fleet purchases.

Fuel prices at year end 2024 started lower than a year earlier. For gasoline 95, the average price reported statewide was 1.559 euros per liter, about 4 percent below the level from the same period in 2023. Diesel A prices dropped to 1.472 euros per liter, marking a sharper year over year decline as reported by the Ministry of Ecological Transition.

Notes for North American readers: these patterns echo similar shifts seen across Canada and the United States where diesel usage in passenger fleets, commercial fleets, and urban transport programs faces evolving regulatory and market pressures. The balance between diesel and gasoline would depend on regional incentives, vehicle electrification progress, and fuel tax structures in each market.

Overall, the data portray a nuanced picture. Diesel remains in use, but its share is shrinking in favor of gasoline and hybrid propulsion. The combination of engine efficiency gains, changing consumer behavior, and policy signals continues to shape the energy and transport landscape across both sides of the Atlantic. In the near term, service stations and fleet operators will keep adjusting to these evolving conditions, balancing supply with demand while monitoring prices that respond to broader geopolitical and economic developments.

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