Diesel prices rise for the first time in 3 months

After seeing weekly declines for three months straight, diesel prices headed in the opposite direction this week, rising $3.5 cents to $3.683 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

By ·

Editor’s note: A July 10 article on the Logistics Management Web site, entitled “Diesel prices dip for the first time in 3 months,” was inaccurate. The headline has been changed to “Diesel prices rise for the first time in 3 months.” LM apologizes for the error.

After seeing weekly declines for three months straight, diesel prices headed in the opposite direction this week, rising $3.5 cents to $3.683 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

This first weekly increase since a 0.6 cent gain the week of April 9 comes on the heels of 3 cents, 5.1 cents, and 5.2 cents, respectively, in recent weeks. And prior to this week’s increase, diesel prices had fallen a cumulative 50 cents over the previous 12 weeks, according to EIA data. This week’s price is 21.6 cents below the average price per gallon at this time last year.

In its recently updated short-term energy outlook, the EIA is calling for diesel prices to average $3.90 per gallon in 2012 and $3.87 in 2013 (down from previous estimates of $4.06 and $4.03, respectively), with oil expected to hit $96.80 in 2012 and $97.00 in 2013 (down from previous estimates of $104.12 and $103.75, respectively).

Oil is currently trading at $85.99 on the New York Mercantile Exchange. The Associated Press reported that this down 2 percent as striking oil workers in Norway—whose oil fields produce more than 3.8 billions of oil and natural gas per day—“forced the industry to prepare for a historic shutdown in the North Sea.”

Even with recent declines, shippers continue to keep a watchful eye on fuel prices and are taking steps to reduce mileage and cut down on empty miles. This was made clear at last month’s eyefortransport 3PL Summit in Chicago. Many shippers told LM that they are constantly monitoring fuel prices, as they relate to freight rates and the overall costs of doing business.

And as previously reported by LM, shippers continue to take steps to minimize the impact of fluctuating fuel costs. Over the years, they have maintained that this is imperative as higher diesel prices have 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.

But even with this week’s increase, shippers have gotten some pricing relief with the cost per gallon of diesel at relatively low levels still, especially when compared to a year ago. 


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 · All Topics
Latest Whitepaper
The Internet of Things and the Modern Supply Chain
Learn today how the internet of things is transforming supply chain operations.
Download Today!
From the February 2017 Issue
As the new administration sends waves of uncertainly through the global trade community, this could be the best time ever for shippers to build an investment case for GTM. Here are five trends you need to watch if you’re about to put these savvy systems to work
Carrier Consolidation Keeps Shippers Guessing
Getting Value from the Cloud
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Advance your career with the fastest growing logistics certification – APICS CLTD
During this webcast presenters will give an overview of APICS and the new Certified in Logistics, Transportation and Distribution (CLTD) designation. Learn how the CLTD program can help you stay on top of current trends and advance your career.
Register Today!
EDITORS' PICKS
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...

Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...
Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...