Diesel prices fall 3.3 cents, says EIA

Following a 4.6 cent decline last week, the price per gallon for diesel fuel dropped another 3.3 cents this week to $3.931, according to the Department of Energy’s Energy Information Administration (EIA).

This marks the third time in the last five weeks the price per gallon has fallen, but the price per gallon as recently as two weeks ago cracked the $4 per gallon mark at $4.01. This marked the first time it had hit that level since checking in at $4.061 on May 16.

As LM has reported, in April and May there were multiple weeks in which the price per gallon of diesel was north of $4, before settling into the $3.70 to $3.90 range for most of the subsequent weeks. And prior to cracking $4 per gallon two weeks ago, the previous week saw the price per gallon spike ten cents, which was the single largest weekly gain since the week of April 11, when the price per gallon increased 10.2 cents to $4.105.

The price per gallon is now 19.3 cents below the 2011 high of $4.124 per gallon from the week of May 2, which is also highest level for diesel prices since August 2008, when prices were approaching $5 per gallon.

On an annual basis, the price per gallon is now up 73.4 cents, which is down from recent comparisons in the mid-80s range.

Meanwhile, the price per barrel of oil reached $102.44 on the New York Mercantile Exchange yesterday, which was its highest level since November 17, before dropping to $101.57, according to an Associated Press report.

Many shippers have told LM they are forecasting for steady fuel increases in their supply chain and transportation budgets should diesel prices continue to hover around the $4 per gallon mark.