Diesel prices head back over the $4 per gallon mark, according to EIA

Diesel prices saw a major increase for the second time in recent weeks, heading up 9.1 cents to $4.051 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

This represents the first time diesel prices have topped the $4 per gallon mark since hitting $4.01 the week of November 21. And it is the highest level for diesel prices since hitting $4.124 the week of May 2.

Diesel prices have gone up five straight weeks and seven of the last eight weeks; prices have gone up a cumulative 26.8 cents over that eight-week span and were down a cumulative 22.7 cents in the previous six weeks leading up to that.

On an annual basis, the price per gallon is up 33.5 cents, which is down sharply from comparisons in the mid-80s range just a few months ago. And while prices have largely been trending down prior to this recent increase, shippers have maintained that they are forecasting for steady fuel increases in their supply chain and transportation budgets should diesel prices continue to hover near or at the $4 per gallon mark.

The EIA recently reported that in its Short-Term Energy Outlook the 2012 average for diesel is up six cents from January at $3.91 per gallon, with 2013 pegged at $3.99. The 2011 average was $3.84.

As LM has reported, 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.

The price per barrel of oil was at $107.84 on the New York Mercantile Exchange earlier today, which remains in line with prices in recent weeks fluctuating around or above the $100 per barrel mark.