Diesel prices drop 2.5 cents to $3.949 per gallon, says EIA

The average price per gallon of diesel gasoline dropped for the second straight week, decreasing 2.5 cents to $3.949 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

This follows a 0.7 cent decline last week and was preceded by two straight weeks at $3.981 per gallon, which represents the highest weekly price since the week of April 1, when it hit $3.993 per gallon. Prior to the matching weeks at $3.981 per gallon, diesel prices rose a cumulative 8.5 cents over the previous three weeks.

This week’s 2.5 cent drop is the steepest decline in diesel prices since a 3.1 cent drop during the week of April 29.

On an annual basis, the average price per gallon of diesel is down 13.7 cents, according to EIA data.

In its recent update of the short-term energy outlook, the EIA expects the average price of diesel for 2013 to be $3.96 per gallon, just ahead of 2012’s $3.97. For 2014, it expects the average price to be 3.82 per gallon.

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.