Petroleum diesel, biodiesel, and renewable diesel are different fuels. Petroleum diesel is a hydrocarbon refined from crude oil. Biodiesel is made by chemically converting oils and fats into fatty-acid esters and is normally sold in blends such as B5 or B20. Renewable diesel is made by hydrotreating fats and oils into hydrocarbons that are chemically equivalent to petroleum diesel, so it can be used as a drop-in fuel when it meets the applicable specification.
There is no single price winner. Retail cost depends on the region, date, blend, feedstock, crude and diesel markets, tax treatment, Renewable Identification Numbers (RINs), and state low-carbon-fuel programs. EPA’s 2026 modeled biodiesel production costs illustrate the range, but they are not pump prices.
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The three fuels at a glance
| Fuel | How it is made and what it contains | U.S. specification and use | Common labeling | Main practical issue |
|---|---|---|---|---|
| Petroleum diesel | Hydrocarbon fuel refined from crude oil | ASTM D975; standard diesel-engine fuel | Diesel or petroleum diesel | Price and emissions exposure follow crude-oil markets and fuel policy |
| Biodiesel | Vegetable oils, animal fats, or used cooking oil converted by transesterification into fatty-acid esters | ASTM D6751 for biodiesel used in blends; higher blends require approval from the engine and fuel-system manufacturer | B5, B20, B100 | Higher cold-weather gelling risk, possible material and filter issues, and more complicated bulk logistics |
| Renewable diesel | Fats and oils hydrotreaded into hydrocarbons chemically equivalent to petroleum diesel | ASTM D975; usable neat or blended with petroleum diesel when the product meets the specification | R100 or a petroleum-diesel blend | Availability is regional, and its economics depend heavily on policy credits and feedstock |
The U.S. Department of Energy Alternative Fuels Data Center (AFDC) explicitly says renewable diesel and biodiesel are not the same fuel. The Energy Information Administration (EIA) describes renewable diesel as a hydrocarbon chemically equivalent to petroleum diesel. That chemical difference explains why renewable diesel is generally a drop-in replacement while biodiesel is normally handled as a blend.
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Petroleum diesel
Petroleum diesel is produced in a refinery from crude oil. Its hydrocarbon composition is the reference point for the U.S. petroleum-diesel specification, ASTM D975. Diesel engines, tanks, pumps, pipelines, and service procedures are designed around this fuel.
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Biodiesel is an ester fuel
Biodiesel starts with a biological oil or fat. A process called transesterification separates the oil’s fatty acids from glycerin and creates fatty-acid esters suitable for diesel blending. Feedstocks can include soybean and other vegetable oils, animal fats, and used cooking oil.
Because biodiesel has a different chemical structure from petroleum diesel, it has its own specification, ASTM D6751. It is commonly blended with petroleum diesel rather than used at 100 percent. The blend number identifies the biodiesel volume: B5 contains up to 5 percent biodiesel, B20 contains 20 percent, and B100 is biodiesel without petroleum diesel.
Renewable diesel is a hydrocarbon fuel
Renewable diesel uses fats and oils as feedstock but processes them with hydrogen. Hydrotreating removes oxygen and produces hydrocarbons similar to those in petroleum diesel. The result can meet ASTM D975, the same U.S. specification used for petroleum diesel.
When it meets the relevant specification, renewable diesel can be sold as R100 (100 percent renewable diesel) or blended with petroleum diesel at any proportion. It is not biodiesel with a different label; it is a different chemical product made by a different process.
How the labels B5, B20, B100, and R100 work
Biodiesel labels describe the percentage of biodiesel in a mixture. B5 is the most broadly compatible blend: EPA says biodiesel concentrations up to 5 percent are approved for safe operation in any diesel engine. B20 is widely used, but the owner’s manual and the engine and fuel-system manufacturer’s approval should be checked before use. B100 is a distinct fuel requiring equipment, storage, and operating practices intended for high biodiesel concentrations.
Renewable diesel labels describe the renewable portion, not an ester blend. R100 means the fuel is entirely renewable diesel. Renewable diesel may also be blended with petroleum diesel, and the blend can still be used as ordinary diesel when it meets ASTM D975. A station’s pump label and the vehicle manufacturer’s instructions determine what is actually being dispensed.
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Can you put renewable diesel in a diesel truck?
Usually, yes, when the product is certified to the applicable diesel specification and the truck manufacturer permits it. Renewable diesel’s ASTM D975 qualification and hydrocarbon chemistry make it a drop-in fuel for diesel equipment designed for petroleum diesel. It can be transported through petroleum-diesel infrastructure and used neat or blended.
That does not mean every station stocks it or that every product marketed as “renewable” has identical policy treatment. Confirm the pump label, fuel specification, and the truck or equipment manual. Fleets should document the product specification and any warranty conditions before changing a contracted fuel supply.
Biodiesel requires a separate compatibility decision. B5 is the broad EPA-approved limit for safe operation in any diesel engine. For B20 or higher, consult the engine maker, fuel-system maker, and any warranty documentation. A fuel that is legal to sell is not automatically approved for every engine at every concentration.
Cold weather, materials, storage, and maintenance
Cold-weather behavior
Biodiesel generally gels at higher temperatures than petroleum diesel. The exact behavior depends on the feedstock, blend concentration, and weather. In cold regions, operators may need a lower biodiesel blend, seasonal fuel management, heated storage, or other measures specified by the equipment and fuel suppliers.
Renewable diesel generally behaves more like petroleum diesel in cold-weather and handling systems because its molecules are hydrocarbons made to the petroleum-diesel specification. Actual cloud point and seasonal properties still depend on the product delivered, so the fuel supplier’s specification remains the controlling document.
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EIA warns that biodiesel can degrade some rubber fuel-line materials. It can also loosen varnish and sediment in tanks and fuel systems; that material may then clog filters during an initial switch or after long storage. A fleet changing to a higher biodiesel blend should plan for inspections and filter service according to the equipment maker’s guidance.
Renewable diesel avoids most of these compatibility differences because its chemistry and ASTM D975 specification match petroleum diesel. This is a practical distinction, not a guarantee that every old tank, seal, or contamination problem disappears. Normal diesel housekeeping, water control, and filter maintenance still apply.
Storage life and handling
Biodiesel’s storage and oxidation behavior varies with feedstock, blend level, temperature, water exposure, and time. Keep tanks clean and dry, follow the fuel supplier’s storage limits, and avoid assuming that a B20 tank can be managed exactly like a petroleum-diesel tank.
Renewable diesel can use ordinary petroleum-liquid tanks and pipelines when it meets ASTM D975. Biodiesel cannot use every petroleum-liquid logistics system in the same way. EIA reports that biodiesel is commonly moved by rail, vessel, barge, or truck because its handling requirements differ.
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Feedstock, lifecycle emissions, and policy eligibility
Both biodiesel and renewable diesel are classified by EPA as biomass-based diesel under the Renewable Fuel Standard. That category requires at least a 50 percent lifecycle greenhouse-gas reduction compared with the diesel baseline, but the actual result depends on the specific feedstock and approved fuel pathway.
Feedstock matters financially and environmentally. Soybean oil, corn oil, animal fats, and used cooking oil can have different energy inputs, land-use assumptions, supply constraints, and lifecycle results. Renewable diesel’s hydrogen source and the energy used in processing also affect lifecycle accounting. A product’s “renewable” name alone does not establish one universal emissions value.
What the fuels cost
Why a single national price is misleading
There is no timeless pump-price ranking between diesel, biodiesel, and renewable diesel. A useful comparison must identify the geography, date, blend, and price level—retail, wholesale, or modeled production cost. AFDC’s fuel-price resource reports regional prices for diesel, biodiesel, renewable diesel, and other fuels; those figures can change as feedstock, transportation, crude oil, and local policy change.
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Retail availability also affects what a driver sees. AFDC notes that nearly all U.S. renewable diesel is used in California, where the Low Carbon Fuel Standard creates strong economic incentives. A renewable-diesel product may therefore be common in one region and unavailable at ordinary stations in another.
EPA’s 2026 modeled biodiesel production costs
EPA’s March 2026 regulatory-impact analysis gives the following estimated biodiesel production costs in its 2026 control case. These are modeled costs in 2024 dollars, not retail pump prices, and they do not represent every producer or market condition.
| Feedstock pathway | Modeled production cost per gallon | What the figure means |
|---|---|---|
| Soybean-oil biodiesel | $5.55 | EPA 2026 control-case estimate, in 2024 dollars |
| Corn-oil biodiesel | $4.67 | EPA 2026 control-case estimate, in 2024 dollars |
| Fats, oils, and greases biodiesel | $4.30 | EPA 2026 control-case estimate, in 2024 dollars |
EPA’s table also includes lower and higher price scenarios, showing that feedstock assumptions can move modeled costs substantially. These numbers should not be compared directly with a station’s posted diesel price without accounting for refining, transport, taxes, blending, retailer margins, and credits.
Credits can reverse the apparent price order
RINs and tax credits can be worth more than the visible fuel-cost difference. EIA reported a D4 RIN price of $2.41 on June 4, 2026. One gallon generates about 1.5 RINs for biodiesel and about 1.6 to 1.7 RINs for renewable diesel, implying a credit value above $3.50 per gallon before other incentives at that quoted RIN price. The value belongs to the party that generates, owns, or retires the credit; it is not automatically a discount at the pump.
Tax policy also changes trade flows. EIA reported average first-half 2025 biodiesel imports of 2,000 barrels per day, down from 35,000 in the first half of 2024. Renewable-diesel imports averaged 5,000 barrels per day in the first half of 2025, down from 33,000 a year earlier. EIA linked part of the decline to replacement of the former $1-per-gallon blender credit with the Section 45Z credit, which applies to domestic production.
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A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11EIA forecast 2026 renewable-diesel production 24 percent above 2025 and biodiesel production 41 percent above 2025. Forecast growth does not guarantee lower prices: demand for feedstocks, hydrogen, transportation, credits, and compliance capacity can all move in the opposite direction.
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Which fuel is cheaper?
For a driver comparing two posted prices, the cheaper choice is the lower delivered price for an approved fuel at that location and date. A B20 price cannot be compared fairly with a renewable-diesel price without identifying the blend, taxes, and whether either price includes a credit or a low-carbon-fuel adjustment.
For a fleet or fuel buyer, compare the total delivered cost rather than the commodity price alone:
- Record the location, delivery date, gallon price, and blend or product designation.
- Confirm whether the quote is retail, wholesale, or a modeled production cost.
- Check the applicable engine approval, ASTM specification, and seasonal cold-flow property.
- Include transportation, tank changes, filter service, and any winterization or storage expense.
- Ask who receives RINs, tax credits, and state low-carbon-fuel credits; do not count a credit twice.
- Recheck the comparison when feedstock prices, crude prices, mandates, or credit markets change.
In some California markets, renewable diesel can be competitively priced because of low-carbon-fuel economics even when its production pathway is more complex. In another region, limited availability and trucking costs can make it more expensive or impossible to buy. Biodiesel may have a lower or higher delivered price depending on feedstock and blend, while its operating costs can rise if cold-weather or filter problems require extra maintenance.
How to choose for a vehicle or fleet
Choose conventional petroleum diesel when
- You need the widest nationwide availability and standard ASTM D975 fuel.
- Your equipment documentation does not approve higher biodiesel blends.
- Winter conditions or long storage make biodiesel’s cold-flow and oxidation management undesirable.
Choose a biodiesel blend when
- The engine and fuel-system manufacturers approve the specific blend.
- You can manage seasonal cold-flow requirements and monitor filters after a change.
- A local supplier offers a favorable delivered price or the fleet values the feedstock pathway and available credits.
Choose renewable diesel when
- The product meets ASTM D975 and is available at a practical delivered cost.
- You want a drop-in fuel without the blend-specific compatibility issues associated with higher biodiesel concentrations.
- Your regional market, fleet contract, or low-carbon program gives the product an economic advantage.
A practical checklist before changing fuel
- Read the equipment documentation. Identify the highest approved biodiesel blend and any renewable-diesel language or warranty conditions.
- Verify the product specification. Ask the supplier whether the fuel is biodiesel meeting ASTM D6751 for blending or renewable diesel meeting ASTM D975.
- Confirm the label. Record whether the product is B5, B20, B100, R100, or a petroleum-diesel blend containing renewable diesel.
- Check seasonal properties. Obtain the supplier’s cold-flow information for the delivery month and operating region.
- Prepare the tank and filters. Inspect for water, sediment, and incompatible materials; plan filter checks if moving to a higher biodiesel blend.
- Compare delivered economics. Include taxes, freight, storage, maintenance, and the treatment of RINs and other credits.
- Document the change. Keep the invoice, specification, blend, delivery date, and equipment approval with the fleet’s maintenance records.
Bottom line for buyers
Biodiesel and renewable diesel are not interchangeable names. Biodiesel is an ester fuel normally sold as B5, B20, or B100 and requires blend-specific compatibility and cold-weather planning. Renewable diesel is a hydrocarbon drop-in fuel that can be used as R100 or blended with petroleum diesel when it meets ASTM D975. Petroleum diesel remains the conventional crude-oil-derived benchmark.
To decide which costs less, compare a dated, regional delivered price for the exact blend, then add the operational and policy factors that apply to your vehicle or fleet. EPA’s 2026 modeled biodiesel costs and EIA’s RIN and import data show why a universal national answer is not reliable.
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