Five yeast species, namely Candida tropicalis, Cryptococcus laurentii, Trichosporon asahii, Rhodotorula mucilaginosa and Candida rugosa isolated from hydrocarbon-contaminated soil were found to be potent degraders of diesel oil. These microorganisms showed the presence of enzymes cytochrome P450, NADPH cytochrome c reductase, aminopyrine N demethylase, alcohol dehydrogenase, aldehyde dehydrogenase, naphthalene dioxygenase, catalase and glutathione S transferase when the cells were incubated for 48h in Bushnell Haas medium supplemented with 2{\%} diesel oil as the sole source of carbon. The cytochrome P450 monooxygenase enzyme system was found to play an important role in diesel oil degradation. A plasmid approximately 12kb in size was found to be harboured by all the yeast species. The role of the plasmid on diesel oil degradation was assessed by biomass inhibition studies, which confirmed that the metabolic machinery of yeast species for diesel oil degradation was plasmid coded. This is the first report establishing the involvement of a plasmid in diesel oil degradation by yeast species. {\textcopyright} 2012 Taylor {\&} Francis.