Subscribe to our free, weekly email newsletter!


Diesel prices are down for the tenth straight week

By Staff
May 07, 2013

The Department of Energy’s Energy Information Administration (EIA) reported this week that diesel prices fell for the tenth consecutive week.

The average price per gallon—at $3.845—fell 0.6 cents, which was three cents less than last week’s 3.6 cent decline, which was preceded by declines of 5.5 cents and 1.6 cents the previous two weeks.

Over the past ten weeks, prices have fallen a cumulative 31.4 cents, with this week’s price marking the lowest level for diesel since $3.85 per gallon the week of August 6. 
Prior to these past nine weeks of declining prices, diesel prices rose a cumulative 26.5 cents over a six week span.

On an annual basis, the average price per gallon is down 21.2 cents.

The EIA recently updated its short-term energy outlook. It is now calling for diesel prices to average $3.90 per gallon in 2013 (down from $3.92) and $3.80 in 2014 (down from $3.82), with WTI crude oil now pegged at $91.92 in 2013 (up from $92.81) and the 2014 forecast remaining unchanged at $92.17.

Regardless of the fluctuation in diesel prices, shippers are cognizant of the impact diesel prices can have on their bottom line—for better or worse.

And they continue to be proactive on that front, too, by taking steps to reduce mileage and transit lengths when possible as well as cut down on empty miles. And even through shippers want to adjust budgets in order to offset the increased costs higher fuel prices bring, it is not always an easy thing to manage.

Shippers have told LM that adjusting budgets is only part of the solution when it comes to dealing—and living—with fuel price fluctuation. 

This was evident in the results of a recent Logistics Management reader study, which polled 420 respondents on their diesel spend.

Nearly 16 percent (15.5) of respondents said that their average fuel surcharge is less than 5 percent above base rates, and 13.8 percent said it was 6-to-10 percent higher. And 14.5 percent said it was 11-to-15 percent higher, with 11.9 percent indicating it was 16-to-20 percent higher. More than 30 percent—33.3 percent—said it was more than 20 percent higher, and 11 percent said they were unsure.

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!

Recent Entries

The Port of Oakland has undertaken a series of measures in recent years to attract more import volume.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement (NAFTA) partners Canada and Mexico increased 8.2 percent from September 2013 to September 2014 at $102.2 billion.

NS said that the D&H lines it plans to acquire connect with the NS network at Sunbury, Pa. and Binghamton, N.Y. and give NS single-line routes from Chicago and the southeast U.S. to Albany, N.Y., which is in close proximity to NS’ Mechanicville, N.Y.-based intermodal terminal.

This follows a 1.6 cent decrease last week, which was preceded by a 5.4 gain the week before and stands as the first increase going back to the week of June 23, when the weekly average headed up 3.7 cents to $3.919 per gallon.

BNSF said that its 2015 capital expenditures will be allocated towards various areas of its business, including maintenance and expansion of the railroad to meet the expected demand for freight rail service, with 2015 representing the third straight year BNSF has invested a record annual capital expenditures investment.

Article Topics

News · EIA · Diesel Prices · Diesel · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA