Diesel prices dropped 4 cents for the second straight week, according to data issued by the Department of Energy’s Energy Information Administration (EIA) this week.
The current price per gallon of diesel is $2.784 per gallon, and the cumulative decline in prices over the last four weeks is at 16 cents. On an annual basis, the average price per gallon is now down $1.175.
Diesel is at a five-year low, with this week’s average the lowest price since February 15, 2010, when it was as $2.756 per gallon.
A recent Logistics Management reader survey found that nearly 75 percent of the roughly 100 surveyed respondents said they do not expect a material increase in the form of higher fuel surcharges in the coming months, with the difference split between those whom said they felt fuel surcharges would increase or that they were unsure.
But, conversely, another 55.4 percent indicated that they planned to raise or adjust their freight budgets to cover higher than budgeted fuel prices should fuel prices continue to head up going forward.
As for how much freight budgets would need to head up, the results varied with: 51 percent saying between 1-5 percent; 32.7 percent saying between 6-10 percent; 6.1 percent saying 11-15 percent; 4.1 percent saying 16-20 percent; 2 percent saying between 21-50 percent, and 4.1 percent saying 100 percent.
The average price per barrel of WTI crude is currently at $52.14 on the New York Mercantile Exchange after heading up $3 yesterday.