Diesel prices fall 0.4 cents to $3.95 per gallon
June 21, 2011
On the heels of the first weekly increase since the week of May 2, when the price per gallon of diesel hit $4.124, the average price per gallon dipped 0.4 cents to $3.95 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).
The price per gallon for diesel has fallen a cumulative 17.4 cents since hitting $4.124 per gallon the week of May 2. On an annual basis, the price per gallon of diesel is up 98.9 cents.
Oil barrel prices are currently trading at $93.60 on the New York Mercantile Exchange, according to media reports. As LM has reported, the price has been dropping in recent weeks due to concerns about renewed stalling in the global economy.
Even with the recent decline of diesel prices, shippers and carriers remain concerned about the price of diesel and oil. While many have indicated that prices at current levels are still digestible, they cautioned that could quickly change depending on how quickly prices rise with summer driving season officially here.
Shippers are bracing for prolonged pain at the pump, according to the results of a recent Logistics Management reader survey of roughly 250 logistics, supply chain, and transportation executives.
The survey revealed that 25 percent felt average fuel surcharges were more than 20 percent above base rates and another 19 percent say average fuel surcharges were 11-15 percent above base rates. 18 percent said average fuel surcharges were in the 16-20 percent range above base rates, with 16 percent of respondents at 6-10 percent and 13 percent saying average fuel surcharges were 1-5 percent above base rates. Another 8 percent said they were unsure of how much their average fuel surcharge was above base rates.
Several shippers have told LM that the current rise in fuel costs is slower and more sustained than it was when prices shot up rapidly during the summer of 2008, forcing shippers to approach the current situation differently.
With fuel prices, for the most part seeing steady gains, the focus from a supply chain management perspective—for shippers—is more on utilization and efficiency by doing things like driving empty miles out of transportation networks.
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