Diesel prices are up nearly five cents, says Energy Information Administration

Diesel prices went up for just the second time in ten weeks, according to data from the Department of Energy’s Energy Information Administration (EIA).

The average price per gallon for diesel rose 4.9 cents to $3.899 per gallon, marking its biggest weekly increase since the week of April 4, when prices went up 4.4 cents to $3.976 per gallon.

Prior to this increase diesel prices had fallen a cumulative 27.4 cents since hitting a 2011 high of $4.124 per gallon the week of May 2.

Compared to a year ago, diesel prices are up 99.6 cents.

While diesel saw a relatively sizable gain in its weekly prices, the price per barrel of crude oil is down $1.05 to $95.15 per barrel on the New York Mercantile Exchange, according to media reports.

An Associated Press report stated that oil prices have been following on the heels of a weekend disclosure that inflation in China reached a three-year high in June. It added that rising consumer prices will heap even more pressure on the country’s expanding economy, explaining that could affect energy demand and also pointing out that oil has been climbing on the expectation that China will drive world oil demand.

As LM has reported, even with the recent decline of diesel prices, 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.