Diesel prices head up 2.5 cents, reports EIA
January 29, 2013
Following its first weekly increase in eight weeks a week ago, diesel prices are up again this week, according to the Department of Energy’s Energy Information Administration.
The average price per gallon of diesel rose 2.5 cents to $3.927 this week, following last week’s 0.8 cent increase. Prior to this increase, prices had been down for seven straight weeks, falling a cumulative 14 cents during that span, and for 12 of the previous 13 weeks. The previous weekly increase came during the week of November 26, when it saw a 5.8 cent bump.
Since reaching a more than four-year weekly high of $4.15 per gallon the week of October 15, diesel prices have gone down a cumulative 22.3 cents. What’s more, prices have been below the $4 per gallon mark for eight consecutive weeks.
The average price per gallon is up 7.7 cents compared to a year ago at this time and ahead of the 5.4 cent annual gap from a week ago.
In its recently updated short-term energy outlook, the EIA is calling for diesel prices to average $3.97 per gallon in 2012 and $3.84 in 2013, with WTI crude oil is expected to hit $94.26 per barrel in 2012 and $88.38 in 2013.
As previously reported, 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.
The focus from a supply chain management perspective, according to shippers, is more on utilization and efficiency by doing things like driving empty miles out of transportation networks.
Shippers have told LM that adjusting budgets is only part of the solution when it comes to dealing—and living—with fuel price fluctuation.
Low diesel prices are expected to continue to be the norm for the foreseeable future.
The EIA recently said that it estimates gasoline prices are expected to drop more than 5 percent in 2013, coupled with rising less than inflation over the next decade.
The price per barrel for oil is at $96.44 a barrel on the New York Mercantile Exchange. The Associated Press reported that it rose 56 cents on Monday after a strong durable goods report in the U.S.
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