Diesel prices fall for ninth straight week

The decline in diesel prices has officially cracked the two-month mark, with prices following for the ninth straight week, according to the Department of Energy’s Energy Information Administration (EIA).

By ·

The decline in diesel prices has officially cracked the two-month mark, with prices following for the ninth straight week, according to the Department of Energy’s Energy Information Administration (EIA).

EIA reported yesterday that prices fell 6.5 cents to $3.781 per gallon, following last week’s 5.9 cent dip, which before this week represented the largest weekly decline since week of December 19, when it dropped 6.6 cents to $3.828. What’s more, the current price per gallon stands as the lowest weekly diesel price since the week of October 10, which was $3.721 per gallon.

Since the nine-week stretch of declining diesel prices began, prices have fallen a cumulative 36.7 cents, according to EIA data. . Prior to that, the price per gallon had been above the $4 per gallon mark for 12 straight weeks.

Compared to this point a year ago, diesel prices are down 17.3 cents.

In its recently updated short-term energy outlook, the EIA is calling for diesel prices to average $4.06 per gallon in 2012 and $4.03 in 2013, with oil pegged at $104.12 per barrel in 2012 and $103.75 in 2013.

Oil is currently trading at $82.46 per barrel on the New York Mercantile Exchange. A Bloomberg report stated that “OPEC will maintain oil-output quotas while prices plunge as Europe’ s debt crisis and China’s slowing growth curb 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. Steps like this were cited by many shippers at the NASSTRAC Logistics Conference & Expo last month.

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.


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

Diesel Prices · EIA · All Topics
Latest Whitepaper
5 Catalysts to Outsource Logistics
Today’s consumer-driven retail strategies are making it more difficult than ever to run an efficient, cost-effective supply chain. Consider the following five challenges that supply chain leaders will have to overcome in order to be effective in coming years – and why these challenges are acting as catalysts to engage with third-party logistics providers for supply chain expertise.
Download Today!
From the July 2016 Issue
While it’s currently a shippers market, the authors of this year’s report contend that we’ve entered a “period of transition” that will usher in a realignment of capacity, lower inventories, economic growth and “moderately higher” rates. It’s time to tighten the ties that bind.
2016 State of Logistics: Third-party logistics
2016 State of Logistics: Ocean freight
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...
Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...

Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....
Top 25 ports: West Coast continues to dominate
The Panama Canal expansion is set for late June and may soon be attracting more inbound vessel calls...