Diesel prices are up for the third straight week

Diesel fuel’s average price per gallon headed up for the third consecutive week, according to the Department of Energy’s Energy Information Administration (EIA).

The average price per gallon of diesel rose 4.3 cents to $2.854 per gallon, following gains of 3.1 cents and 2.6 cents, respectively, the previous two weeks for a cumulative ten cent gain over the last three weeks.

The gains over the last three weeks come on the heels of a cumulative 16.3 cent decrease over the previous five weeks. On an annual basis, the average price of diesel is down $1.11, with price last year at this time of $3.964 the highest weekly average in the last year.

A recent Logistics Management reader survey found that nearly 75 percent of the roughly 100 surveyed respondents said they do not expect a material increase in the form of higher fuel surcharges in the coming months, with the difference split between those whom said they felt fuel surcharges would increase or that they were unsure.

But, conversely, another 55.4 percent indicated that they planned to raise or adjust their freight budgets to cover higher than budgeted fuel prices should fuel prices continue to head up going forward.

As for how much freight budgets would need to head up, the results varied with: 51 percent saying between 1-5 percent; 32.7 percent saying between 6-10 percent; 6.1 percent saying 11-15 percent; 4.1 percent saying 16-20 percent; 2 percent saying between 21-50 percent, and 4.1 percent saying 100 percent.

Oil is currently trading at $60.92 on the New York Mercantile Exchange. The Wall Street Journal reported that the recent spike in oil prices is due to a Libyan port halting crude exports and Saudi Arabia raising prices for some of its oil.