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
The Internet of Things and the Modern Supply Chain
Learn today how the internet of things is transforming supply chain operations.
Download Today!
From the February 2017 Issue
As the new administration sends waves of uncertainly through the global trade community, this could be the best time ever for shippers to build an investment case for GTM. Here are five trends you need to watch if you’re about to put these savvy systems to work
Carrier Consolidation Keeps Shippers Guessing
Getting Value from the Cloud
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Advance your career with the fastest growing logistics certification – APICS CLTD
During this webcast presenters will give an overview of APICS and the new Certified in Logistics, Transportation and Distribution (CLTD) designation. Learn how the CLTD program can help you stay on top of current trends and advance your career.
Register Today!
EDITORS' PICKS
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...

Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...
Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...