Diesel prices fall for the fourth straight week, reports EIA
October 08, 2013
The average price per gallon of diesel gasoline fell for the fourth straight week, the Department of Energy’s Energy Information Administration (EIA) said this week.
With a 2.2 cent decrease, the average price per gallon is now $3.897, said EIA. This comes on the heels of 3 cent, 2.5 cent, and 0.7 cent declines, bringing the cumulative decrease over the last four weeks to 8.4 cents.
Prior to this four-week stretch of declines—the first time diesel has headed down for that duration since June—diesel prices held firm at $3.891 per gallon for two straight weeks, which marked the highest weekly price since the week of April 1, when it hit $3.993 per gallon. Prior to the matching weeks at $3.981 per gallon, diesel prices rose a cumulative 8.5 cents over the previous three weeks.
In its recent update of the short-term energy outlook, the EIA expects the average price of diesel for 2013 to be $3.96 per gallon, just ahead of 2012’s $3.97. For 2014, it expects the average price to be 3.82 per gallon.
The recent decline in prices is not entirely surprising, given record high refining in the U.S., shrinking consumer demand and slumping crude oil prices, Tom Kloza, chief oil analyst for Internet website price tracker GasBuddy.com, said in a USA Today report.
Regardless of the fluctuation in diesel prices, shippers are cognizant of the impact diesel prices can have on their bottom line—for better or worse.
And they continue to be proactive on that front, too, by taking steps to reduce mileage and transit lengths when possible as well as cut down on empty miles. And even through shippers want to adjust budgets in order to offset the increased costs higher fuel prices bring, it is not always an easy thing to manage.
Subscribe to Logistics Management magazine
entire logistics operation. Start your FREE subscription today!