Diesel prices fall for sixth straight week, reports EIA
August 12, 2014
Diesel prices saw a decline for the sixth straight week, according to the Department of Energy’s Energy Information Administration (EIA).
The average price per gallon of diesel dropped 1 cent to $3.843 per gallon, which is the lowest price since hitting $3.844 the week of November 25, 2013.
In the previous five weeks, diesel saw declines of 0.5 cents, 1.1 cents, 2.5 cents, 1.9 cents, and 0.7 cents, respectively, for a cumulative 7.7 cent decline.
Since the week of March 10, which saw prices at $4.021 per gallon, weekly diesel average prices have fallen in 18 of the subsequent 22 weeks, and diesel has fallen 17.8 cents since March 10.
On an annual basis, the current average price of diesel is down 5.3 cents. On a year-to-date basis going back to January 6, the average price has dipped 6.7 cents.
In its recently-issued Short Term Energy Outlook, the EIA pegged the average price for diesel prices in 2014 at $3.90 and $3.78 in 2015, with crude oil at $98.67 per barrel in 2014 and $90.92 in 2015.
As LM has reported, with prices continuing to hover around the $4 per gallon mark adjusting budgets is only part of the solution when it comes to dealing—and living—with fuel price fluctuation, according to shippers.
In some cases they look for hedge diesel prices when it is applicable, shippers have told LM. This involves committing to a certain price on fuel at which pay to a certain rate at which point it is frozen at that rate for the shipper. And it also requires shippers to be focused on keeping their drivers on the road as much they can and being profitable and
not in detention.
Other steps being taken by shippers to combat high fuel prices include things like focusing more on utilization and efficiency by doing things like driving empty miles out of transportation networks.
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