Subscribe to our free, weekly email newsletter!


Diesel prices head down for fifth straight week, reports EIA

By Staff
August 05, 2014

The average price per gallon of diesel gasoline fell for the fifth straight week, according to the Department of Energy’s Energy Information Administration (EIA).

Falling 0.5 cents to $3.853 per gallon, this decline follows declines of 1.1 cents, 2.5 cents, 1.9 cents, and 0.7 cents, respectively, for a cumulative 6.5 cent decline during that period.

Based on EIA data the current average price per gallon stands as the lowest price since checking in at $3.844 the week of November 25, 2013.

Since the week of March 10, which saw prices at $4.021 per gallon, weekly diesel average prices have fallen in 17 of the subsequent 21 weeks.

On an annual basis, the current average price of diesel is down 5.6 cents. On a year-to-date basis going back to January 6, the average price has dipped 2.2 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.

A shipper told LM that if prices going forward were to head up that carriers will do all they can to pass any excess cost back to the shipper, with smaller carriers likely to feel the pain associated with the fuel increase and are demanding more for their services.

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!

Recent Entries

83% of surveyed manufacturers either already have IoT implementations in place or plans to deploy within a year.

While the Port of Oakland agrees that Saturday gate operations might ease congestion, they have a few "concerns" of their own

The four international marine container terminals at the Port of Oakland have announced they are developing a program to operate their terminal gates on Saturdays to reduce weekday congestion at the port.

Private fleet managers are facing a remarkable set of challenges in today's demanding business environment. The "from any place at any time" omni-channel fulfillment mindset is just one significant development that companies have had to adapt to in their quest to keep customers and business partners happy.

This is the first guaranteed weekly service direct to the U.S. from Singapore as part of the company’s initiative to enhance its LCL offerings serving Trans-pacific needs.

Article Topics

News · EIA · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA