Diesel prices are up for second straight week

Average diesel prices for the week of September 20 at $2.960 per gallon were up 1.7 cents from the week of September 13. Prior to this increase, diesel prices have been heading down since reaching $2.991 the week of August 9, falling a cumulative six cents from August 9 to September 6.

<p>Average diesel prices for the week of September 20 at $2.960 per gallon were up 1.7 cents from the week of September 13. Prior to this increase, diesel prices have been heading down since reaching $2.991 the week of August 9, falling a cumulative six cents from August 9 to September 6.</p>

Average diesel prices for the week of September 20 at $2.960 per gallon were up 1.7 cents from the week of September 13. Prior to this increase, diesel prices have been heading down since reaching $2.991 the week of August 9, falling a cumulative six cents from August 9 to September 6.

in the News

State of Logistics 2016: Pursue mutual benefit
B2B Sellers Prefer a Unified Approach for Ecommerce
Report forecasts growth in automated truck loading systems
B2B Industrial Packaging acquires Alpine Distribution’s packaging division
Corrugated industry links rise in recycled content of boxes to advances papermaking technology
More News
By ·

Diesel prices inched up for the second straight week on the heels of four straight weekly declines, according to data released this week by the Department of Energy’s Energy Information Administration (EIA).

Average diesel prices for the week of September 20 at $2.960 per gallon were up 1.7 cents from the week of September 13. Prior to this increase, diesel prices have been heading down since reaching $2.991 the week of August 9, falling a cumulative six cents from August 9 to September 6, according to EIA data.

The current average price per gallon of diesel is 33.8 cents higher than a year ago, and prices have now been below the $3 per gallon mark for the last 17 weeks. The current average price per gallon of diesel is 16.7 cents below the 2010 weekly high of $3.127 per gallon from the week of May 10.

Current prices are slightly above the recently-revised EIA recent Short Term Energy Outlook, which is now calling for 2010 average diesel prices to be $2.93 per gallon and $3.10 in 2011.

The EIA is calling for 2010 crude oil prices to hit $79.13 per barrel and 2011 prices at $83.50 per barrel. This is below current oil prices, which are at $74.17 (as of press time), which is nearly even with last week. 

Various report have indicated current oil prices have been relatively low due to higher inventories which is a sign of weaker demand and slowing economic growth. Another reason for declining prices is that summer driving season is over, which means fewer people are driving.

And an Associated Press report noted that oil prices have hovered around the $75 a barrel level since the beginning of summer, with some analysts expecting high crude inventories to weigh on prices even if the economy grows more than expected over the next year.

As LM has reported, even though diesel prices appear to be in check for the time being, freight transportation stakeholders maintain that there is no real rhyme or reason when it comes to assessing the string of rising and falling fuel prices.

Some experts say that the there has never been a period of volatility in fuel prices like there has been in the last year. And with prices currently down by no means indicates prices will stay down or sharply go up.

As oil prices ride the wave of fluctuating prices, a recent Logistics Management reader survey of about 150 logistics, supply chain, and transportation managers found interesting disparities regarding how much shippers’ average fuel surcharges were above their base rates.

The survey revealed that 20 percent felt average fuel surcharges were 6-10 percent above base rates as did another 20 percent say average fuel surcharges were 11-15 percent above base rates. 19 percent said average fuel surcharges were in the 0-5 percent range above base rates, with 17 percent of respondents at 16-20 percent and 9 percent saying average fuel surcharges were 21 percent above base rates.

 


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 Prices · EIA · All Topics
Latest Whitepaper
B2B Sellers Prefer a Unified Approach for Ecommerce
A new study from Forrester Consulting, commissioned by NetSuite, found that many midmarket, B2B sellers say their ecommerce solutions have contributed to their growth in sales, new customer acquisitions and improved customer relationships.
Download Today!
From the August 2016 Issue
A growing number of low-cost lift trucks offer new avenues for pairing equipment and applications, but less cautious buyers might find that small up-front costs come at a steep price. Selecting the proper lift truck, lift truck tips 2016, Choosing the right Lift Truck
Megatrends in ocean freight
Ocean Cargo Roundtable: What’s in store for 2017?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...
Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...

Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....
Top 25 ports: West Coast continues to dominate
The Panama Canal expansion is set for late June and may soon be attracting more inbound vessel calls...