Coal is generally cheaper than fuel. This is primarily due to the abundance and extraction efficiency of coal compared to other types of fuel. According to the U.S. Energy Information Administration (EIA), the average cost of coal in 2020 was around $0.55 per megawatt-hour (MWh), while the average cost of natural gas, a common fuel, was approximately $2.10 per MWh. This significant price difference is driven by the fact that coal is more widely available and easier to extract than natural gas, which often requires more complex and expensive extraction methods such as hydraulic fracturing (fracking).

The cost of coal is also influenced by factors such as mining efficiency, transportation costs, and market demand. Coal mining operations have become more efficient over the years, leading to lower production costs. Additionally, coal is often located closer to power plants than natural gas reserves, reducing transportation costs. Furthermore, coal has traditionally been a dominant energy source in the United States, which has led to a well-established infrastructure and lower costs associated with its use.

In contrast, the cost of fuel, which can include gasoline, diesel, and other liquid fuels, is subject to volatile global oil prices. These prices are influenced by geopolitical events, supply disruptions, and market speculation. As a result, the cost of fuel can fluctuate significantly over time, making it less predictable and more expensive than coal. For instance, the EIA reported that the average cost of gasoline in the United States was around $2.30 per gallon in 2020, which translates to approximately $2.80 per MWh when converted to electricity generation costs.

Moreover, the environmental and regulatory challenges associated with fuel production and use contribute to higher costs. Fuel production facilities must comply with stringent environmental regulations, which can increase operational costs. Additionally, the shift towards cleaner energy sources, such as renewable energy and natural gas, has led to increased competition for fuel resources, further driving up prices.

In conclusion, coal is generally cheaper than fuel due to its abundance, extraction efficiency, and established infrastructure. The volatility of global oil prices and the environmental and regulatory challenges associated with fuel production contribute to higher costs. However, it is important to note that the cost of coal can also fluctuate, and the overall cost-effectiveness of coal versus fuel depends on various factors, including market conditions and technological advancements.