Diesel falls for second time in three weeks but remains over $4 per gallon

One week after the price per gallon of diesel reached its highest mark since checking in at $4.208 per gallon the week of August 18, 2008, the price dropped for the second time in the last three weeks, according to the Department of Energy’s Energy Information Administration (EIA).

By ·

One week after the price per gallon of diesel reached its highest mark since checking in at $4.208 per gallon the week of August 18, 2008, the price dropped for the second time in the last three weeks, according to the Department of Energy’s Energy Information Administration (EIA).

This week’s price of $4.127 per gallon is down 2.1 cents from last week. But even with the decline, the price per gallon of diesel is firmly above the $4 per gallon mark for the eighth consecutive week. While these prices remain fairly high, they are still more than 50 cents less per gallon compared to the summer of 2008, which peaked during the week of July 14, 2008 at $4.764 per gallon.

Diesel prices have seen gains in 12 of the last 15 weeks and have risen a cumulative 34.4 cents since the week of January 2. And based on EIA data this week’s 2.1 cent decline is the steepest since the week of December 26, which saw a 3.7 cent decline.

As prices continue to rise more often than not lately, the gap in annual price per gallon comparisons continues to narrow, with this week’s price up 2.2 cents compared to last year. This is down sharply from comparisons in the mid-80s range just a few months ago. And while prices have largely been trending down prior to this recent increase, shippers have maintained that they are forecasting for steady fuel increases in their supply chain and transportation budgets should diesel prices continue to hover near or at the $4 per gallon mark.

And as previously reported by LM, shippers continue to take steps to minimize the impact of fluctuating fuel costs. Over the years, they have maintained that this is imperative as higher diesel prices have the potential to hinder growth and increase operating costs, which will, in turn, force them to raise rates and offset the increased prices to consumers.

A conference call hosted by Stifel Nicolaus last week, which featured Tom O’Brien CEO, TravelCenters of America and Petro Stopping Centers and Mark Hazelwood Executive Vice President, Pilot Flying J Travel, noted that “diesel fuel price will trend higher, perhaps more quickly and with more volatility than oil prices, as diesel is in great demand around the world,” adding that [t]he demand for highway diesel fuel in the U.S. has dropped by 25%+ since 2007 due to a variety of factors.”

The price per barrel for oil is currently at $101.78 on the New York Mercantile Exchange. An Associated Press report noted that weak U.S. jobs figures and expectations of growing crude oil stockpiles raised the prospect that U.S. demand will remain tepid.

Oil barrel prices as of press time today hit $103.76 per barrel, rising slightly. An Associated Press report noted that this increase was due to a successful Spanish debt sale which eased fears over Europe’s debt crisis and saw investors look to U.S. earnings for signs of health in consumer spending.


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
Face security threats head-on. Protect data beyond perimeter.
Traditional Data Loss Protection (DLP) solutions present a number of serious shortcomings and challenges for companies deploying them, creating a clear gap in the market.
Download Today!
From the January 2018 Logistics Management Magazine Issue
Industry experts agree that costs across all sectors worldwide will continue to rise in 2018, and the most successful shippers will be those that are able to mitigate their impact on profitability. And, the right technology will play an increasingly vital role in driving efficiencies across the global logistics network.
The Future of Retail Distribution
Navigating the Reverse Supply Chain for Connected Devices
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Securing IoT data across the connected supply chain
Learn why a holistic approach to IAM is the most effective way to govern access to your systems and information requested by your partners, vendors, customers, and connected devices.
Register Today!
EDITORS' PICKS
State of Global Logistics: Delivering above and beyond
Industry experts agree that costs across all sectors worldwide will continue to rise in 2018, and...
2018 Rate Outlook: Economic Expansion, Pushing Rates Skyward
Trade and transport analysts see rates rising across all modes in accordance with continued...

Building the NextGen Supply Chain: Keeping pace with the digital economy
Peerless Media’s 2017 Virtual Summit shows how creating a data-rich ecosystem can eliminate...
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...