Diesel prices dip for the fifth straight week

Diesel prices continue to head south, with prices dropping 0.4 cents this week to $3.976 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

This represents the fifth straight week the average price per gallon has fallen, with prices below $4 per gallon the last two weeks. Compared to a year ago, the average price per gallon is down 3.4 cents, and cumulatively prices have dropped 17.4 cents over the last 5 weeks, going back to the week of October 15, which hit $4.15 per gallon, which is the highest price since the week of August 18, 2008, when prices were $4.207 per gallon.

In its recently updated short-term energy outlook, the EIA is calling for diesel prices to average $3.96 per gallon in 2012 and $3.73 in 2013, with WTI crude oil expected to hit $95.66 per barrel in 2012 and $92.63 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.

Oil barrel prices on the New York Mercantile Exchange were at $89.28 at press time. The Associated Press reported that oil prices are at their highest point in nearly a month on rising concerns about the Middle East as well as optimism that U.S. political leaders will reach a budget deal before the end of the year, avoiding a hit to the economy.