Diesel average falls 1.6 cents to $2.786 per gallon, reports EIA

The Department of Energy’s Energy Information Administration (EIA) reported earlier this week that the average price per gallon of diesel gasoline dropped 1.6 cents to $2.786 per gallon.

By ·

The Department of Energy’s Energy Information Administration (EIA) reported earlier this week that the average price per gallon of diesel gasoline dropped 1.6 cents to $2.786 per gallon.

This snaps a stretch of recent gains in recent weeks, due to the impact of Hurricanes Harvey and Irma on freight transportation and logistics operations. From the week of August 28 to the week of September 4 after Harvey hit Texas that week’s average price jumped 15.3 cents to $2.758 per gallon, which at that time was the highest weekly level going back to $2.782 from the week of July 20, 2015 and the largest weekly gain since March 2011.

On an annual basis, this week’s average price per gallon is up 39.7 cents.

The average price per barrel of West Texas Intermediate Crude oil on the New York Stock Exchange is $49.91, which is in close range to last Thursday’s almost -four month high of $50.50.

“They’re still working out the aftermath of the hurricanes,” said John Kilduff, a partner at Again Capital Management in New York., in a Reuters report. “The big thing about this week is that the inventory reports are going to be bearish for crude.” And he added that even as oil refineries restart, imports at reopened ports are likely to drive up stockpiles, he said.

Analysts at Fleet Advantage, a provider of truck fleet business analytics, equipment financing and asset management, told LM that the shortfall that may occur with oil and refining capabilities, as a result of Harvey,  will surely create an under capacity situation and fuel prices will likely increase.

“Capacity and volume demand drive price and volume demand and capacity will likely become unbalanced,” the company said. “We can expect prices to increase not only on fuel but also on supplies and materials. Production will be affected negatively and other production resources outside of the disaster areas will have to fill in behind the damaged plants. We always counsel our fleet truck partners to pay close attention on fuel and diesel prices, even when prices are low. Diesel can represent a significant portion of operational costs for a truck fleet company, which is why many are now shifting their strategies to a shorter operational lifecycle. This ultimately helps drive down costs not only for the fleet operator, but throughout the supply chain.”


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

Diesel · Diesel Prices · EIA · All Topics
Latest Whitepaper
The Retailer’s Atlas for Omnichannel Returns
Fueled by e-commerce, the new state of retail is truly an omnichannel one, and companies will flourish or flounder based on how well their supply chain can meet customer expectations.
Download Today!
From the November 2017 Logistics Management Magazine Issue
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships into true, collaborative partnerships—and greatly strengthened its logistics and supply chain operations in the process.
34th Annual Quest for Quality Awards: 2017 Awards Dinner
Trucking Regulations: Washington U-Turns; States put hammer down
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Logistics Showcase: Rising to the same-day delivery challenge
Today’s delivery puzzles are very different than traditional DC to store or warehouse to DC puzzles. It’s not just the shorter time frame for delivery; the basic requirements are significantly different and more complex as well. In this session you'll learn how to address same day delivery challenges while also driving down costs and increasing customer satisfaction.
Register Today!
EDITORS' PICKS
2017 NASSTRAC Shipper of the Year: Mallinckrodt; Mastering and managing complexity
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships...
2017 Alliance Awards: Recognizing outstanding supply chain partnerships
In an era where effective supply chain collaboration is both highly valued and elusive, Logistics...

26th Annual Study of Logistics and Transportation Trends: Transportation at Digital Speed
While a majority of companies strongly agree that transportation is a strategically important...
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...