Diesel goes up again, remains over $4 per gallon mark for third straight week

Diesel prices remained above the $4 per gallon mark for the third straight week, according to the Department of Energy’s Energy Information Administration (EIA).

The price per gallon increased 2.9 cents to $4.123 per gallon, marking the highest price for diesel since the week of May 2, 2011, when it reached $4.124 per gallon. This most recent increases follows gains of 4.3 cents and 9.1 cents, respectively, over the previous two weeks.

The price per gallon of diesel fuel has gone up seven straight weeks and 11 of the last 12, with prices rising a cumulative 34.0 cents during that span. Cumulative prices dropped 22.7 weeks in the six weeks leading up to that.

Compared to a year ago at this time, the price per gallon is up 21.5 cents, which is down 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.

The EIA recently reported that in its Short-Term Energy Outlook the 2012 average for diesel per gallon is now at $41.5, with 2013 pegged at $4.11. The 2011 average was $3.84.

As LM has reported, 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.

The price per barrel of oil was at $107.02 on the New York Mercantile Exchange earlier today, which is in line with recent prices. An Associated Press report indicated that an improving U.S. economy will boost demand at a time when the ability to increase crude production is limited.