Diesel prices dip 0.5 cents

Diesel prices continued to trend down, falling for the tenth time in the last 11 weeks, according to the Department of Energy’s Energy Information Administration.

The average price per gallon dipped 0.5 cents to $3.918 per gallon. This follows a 2.2 cent decline from an average price of $3.945 from the week of December 17 to $3.923 the week of December 24.

Diesel prices have fallen a cumulative 23.2 cents since hitting a more than four year high of $4.15 per gallon the week of October 15. Prices have been below the $4 per gallon mark for four straight weeks and six of the last eight weeks.

Compared to a year ago, the average price per gallon is up 13.5 cents, said the EIA.

In its recently updated short-term energy outlook, the EIA is calling for diesel prices to average $3.97 per gallon in 2012 and $3.84 in 2013, with WTI crude oil is expected to hit $94.26 per barrel in 2012 and $88.38 in 2013.

As previously reported, regardless of the fluctuation in diesel prices, shippers are cognizant of the impact diesel prices can have on their bottom line—for better or worse.

And they continue to be proactive on that front, too, by taking steps to reduce mileage and transit lengths when possible as well as cut down on empty miles.

And even through shippers want to adjust budgets in order to offset the increased costs higher fuel prices bring, it is not always an easy thing to manage.

The focus from a supply chain management perspective, according to shippers, is more on utilization and efficiency by doing things like driving empty miles out of transportation networks.

Shippers have told LM that adjusting budgets is only part of the solution when it comes to dealing—and living—with fuel price fluctuation. 

Low diesel prices are expected to continue to be the norm for the foreseeable future.

The EIA recently said that it estimates gasoline prices are expected to drop more than 5 percent in 2013, coupled with rising less than inflation over the next decade.