Diesel prices are down for the fourth straight week, reports EIA
July 29, 2014
The average price per gallon for diesel gasoline dropped for the fourth straight week, according to the Department of Energy’s Energy Information Administration (EIA).
With a 1.1 cent drop to $3.858 per gallon, this follows declines of 2.5 cents, 1.9 cents, and 0.7 cents over the previous three weeks, with the cumulative four-week decline at 6.2 cents. And based on EIA data the current average price per gallon stands as the lowest price since checking in at $3.844 the week of November 25, 2013.
Since the week of March 10, which saw prices at $4.021 per gallon, weekly diesel average prices have fallen in 16 of the subsequent 20 weeks.
On an annual basis, the current average price of diesel is down 5.7 cents.
In its recently-issued Short Term Energy Outlook, the EIA pegged the average price for diesel prices in 2014 at $3.90 and $3.78 in 2015, with crude oil at $98.67 per barrel in 2014 and $90.92 in 2015.
As LM has reported, with prices continuing to hover around the $4 per gallon mark adjusting budgets is only part of the solution when it comes to dealing—and living—with fuel price fluctuation, according to shippers.
In some cases they look for hedge diesel prices when it is applicable, shippers have told LM. This involves committing to a certain price on fuel at which pay to a certain rate at which point it is frozen at that rate for the shipper. And it also requires shippers to be focused on keeping their drivers on the road as much they can and being profitable and
not in detention.
Other steps being taken by shippers to combat high fuel prices include things like focusing more on utilization and efficiency by doing things like driving empty miles out of transportation networks.
A shipper told LM that if prices going forward were to head up that carriers will do all they can to pass any excess cost back to the shipper, with smaller carriers likely to feel the pain associated with the fuel increase and are demanding more for their services.
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