Diesel prices head up 8.2 cents to $4.104 per gallon, reports EIA
February 12, 2013
Following a 9.5 cent gain a week ago, the average price per gallon for diesel gasoline increased 8.2 cents to $4.104 per gallon this week, according to the Department of Energy’s Energy Information Administration (EIA).
This represents the highest level for diesel prices since it hit $4.116 per gallon the week of October 22. And over the last two weeks, prices have risen a cumulative 17.7 cents, and over the last four weeks, they have gone up 22 cents, according to EIA data.
Last week’s 9.5 cent gain represented the largest weekly increase since the price moved up 6 cents to $4.034 the week of November 11, and it was the first time weekly prices topped the $4 per gallon mark since reaching $4.027 the week of December 3.
Prior to last week, diesel prices had been below the $4 per gallon mark for eight consecutive weeks.
The average price per gallon is up 16.1 cents compared to a year ago at this time.
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.
The price per barrel for oil is at $97.31 on the New York Mercantile Exchange, rising slightly as OPEC upgraded its forecast for global demand this year, according to an Associated Press report.
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