Diesel prices fall for sixth straight week, according to EIA

The price per gallon for diesel gasoline continued heading south, falling 0.8 cents to $3.783 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

This most recent decline represents the sixth straight week prices have fallen, with prices down a cumulative 22.7 cents during that period. And prior to this four week decline, prices were up a cumulative 12.3 cents over a two-week period. This week’s price is the lowest price diesel prices have hit since the week of October 10, when it was at $3.721 per gallon.

Compared to the same week a year ago, the average price per gallon of diesel is up 45.2 cents, down sharply from annual comparisons in the mid-80s range just a few weeks ago.

Despite the recent weekly declines in the price per gallon for diesel, 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.

This was evident in the results of a recent Logistics Management reader survey, which found that nearly 40 percent of 344 respondents said their average fuel surcharges are 20 percent or more above base rates. 

Robert W. Baird and Co. analyst Benjamin Hartford wrote in a recent research note that though the modest decline [of diesel prices] in recent weeks provides some relief, the absolute level of fuel prices and the rise from the 4Q low of $3.72 in early October to over $4.00 in late November presents a modest headwind for truckers and railroads.

The price per barrel of oil was at $102.96 on the New York Mercantile Exchange late Tuesday. An Associated press report noted that “an improving U.S. economy” was providing a lift to oil prices, adding that crude oil has gone up significantly from the $75 per barrel range in October, “amid evidence the U.S. economy is slowly growing and may avoid recession this year.”