Diesel prices are up for third straight week, says Energy Information Administration

The average price per gallon for diesel increased 2.6 cents to $3.949 per gallon.

By ·

Diesel prices increased for the third consecutive week and the fourth time in the last 12 weeks,according to data from the Department of Energy’s Energy Information Administration (EIA).

The average price per gallon for diesel increased 2.6 cents to $3.949 per gallon, following 2.4 and 4.9 cents, respectively, over the last three weeks for a cumulative 9.9 cent increase. The 4.9 cent gain from earlier this month marked the single largest weekly gain since the week of April 4, when prices went up 4.4 cents to $3.976 per gallon.

Prior to these recent increases diesel prices had fallen a cumulative 27.4 cents since hitting a 2011 high of $4.124 per gallon the week of May 2. And this week’s price per gallon is cumulatively 17.5 cents less since the week of May 2.

Compared to a year ago, diesel prices are up $1.03.

Oil prices are currently trading at $99.91 on the New York Mercantile Exchange.  A Reuters report stated that prices will remain or exceed the $100 a barrel mark, “on the dollar’s weakness as political wrangling over the U.S. debt ceiling and budget continues.”

Given the fluctuation—and still high prices—of diesel, shippers and carriers remain concerned about the price of diesel and oil. While many have indicated that prices at current levels are still digestible, they cautioned that could quickly change depending on how quickly prices rise with summer driving season officially here.

And even with declines in prices in recent weeks, the focus from a supply chain perspective for managing fuel price ebbs and flows—for shippers—is more on utilization and efficiency by doing things like driving empty miles out of transportation networks.

In terms of how these prices can impact supply chain and logistics operations at a time when freight volumes are showing slow but consistent growth, many shippers have expressed concern about the pace of these diesel increases, explaining that if prices continue to rise at their current pace, it has 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.

This was made clear by Tommy Hodges, chairman/owner of Goggin Warehousing LLC, and chairman of the American Trucking Associations, at an industry conference earlier this year.

“Fuel is a scarce commodity; we all have to get our arms around that fundamental premise if we are going to move forward in making a difference,” he said. “It is not a throwaway issue where we think there is a never-ending flow, and it is always going to be cheap. Those days are long gone and this brings a whole new threshold of thought of what we do everyday and how we relate to increasing prices and escalating fuel costs.”

Hodges stressed that when it comes to the best way of dealing with increasing fuel costs, it is something that needs full collaboration among shippers, carriers, and other logistics and transportation and logistics service providers to lower their carbon footprints.


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 · Diesel Prices · EIA · Transportation · Trucking · All Topics
Latest Whitepaper
Download the Full 2017 Logistics Management Salary Survey
How does your earning power match up with your logistics and supply chain peers? Find out by downloading the full 2017 Salary Survey from Logistics Management
Download Today!
From the April 2017 Issue
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management market, and in marked contrast to 2016, paints a rosier outlook for career placement and advancement.
Is Your Tractor Trailer Yard a Black Hole?
Information Management: Wearables come in for a refit
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Maximize Your LTL Driver Adherence with Real-time Feedback
This webinar shows how companies are using real-time performance data to optimize the scheduling of their city fleets, as well as the routing of their standard, accelerated and time-critical shipments.
Register Today!
EDITORS' PICKS
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...

ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...