Diesel prices are up for fourth time in last five weeks, says EIA

Diesel prices are up 0.6 cents this week to $3.856 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

This increase marks the fourth time in the last five weeks prices are up for a cumulative 7.3 cent gain. These increases were preceded by a cumulative 22.7 cent gain over the previous six weeks, according to EIA data.

On an annual basis, prices are up 34.3 cents, which 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.

The EIA also reported this week that in its Short-Term Energy Outlook the 2012 average for diesel is up six cents from January at $3.91 per gallon, with 2013 pegged at $3.99. 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 $98.59 on the New York Mercantile Exchange earlier today, which is in line with prices in recent weeks fluctuating around the $100 per barrel mark.

The Associated Press reported that prices inched up a bit following government reports that U.S. supplies did not grow as much as expected last week.