Diesel prices head up for second straight week
May 21, 2013
Diesel prices headed up for the second straight week, following ten consecutive weeks of declines, according to the Department of Energy’s Energy Information Administration (EIA).
Following last week’s 2.1 cent gain, the average price per gallon increased 2.4 cents this week to $3.89 per gallon. During the ten weeks of declining prices, diesel prices dropped a cumulative 31.4 cents. Prior to the previous ten weeks of declining prices, diesel prices rose a cumulative 26.5 cents over a six week span. And on an annual basis, the average price per gallon is down 6.6 cents.
The EIA recently updated its short-term energy outlook. It is now calling for diesel prices to average $3.93 in 2013 (up from $3.90) and $3.79 in 2014 (down from $3.80), with WTI crude oil at $93.17 in 2013 (up from $91.92) and $92.25 in 2014 (up from $92.17).
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.
Shippers have told LM that adjusting budgets is only part of the solution when it comes to dealing—and living—with fuel price fluctuation.
This was evident in the results of a recent Logistics Management reader study, which polled 420 respondents on their diesel spend.
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