Diesel prices fall for 11th consecutive week
June 26, 2012
The decline in weekly diesel prices is rapidly approaching the three-month mark, with prices dipping for the 11th consecutive week, according to the Department of Energy’s Energy Information Administration (EIA).
In its data released yesterday, the EIA said that weekly prices fell 5.1 cents to $3.678 per gallon. This follows last week 5.2 cent decline. The current price per gallon stands as the lowest weekly diesel price since the week of February 21, 2011 which was $3.573 per gallon.
Over the past 11 weeks, diesel prices have fallen a cumulative 47 cents, according to EIA data. And this week’s price is 21 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 $79.63 per barrel on the New York Mercantile Exchange. A Bloomberg report noted that prices fell below $80 per barrel for the “third day in New York on concern that a meeting of European Union leaders this week will fail to check the region’s debt crisis, leading to a reduction in fuel demand.”
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 week’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.
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