Diesel prices hit highest level since April, says Energy Information Administration

Diesel prices moved up 3.8 cents to $4.127 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

This marks the ninth straight week diesel prices have increased and the third straight week the price per gallon has been above the $4 mark, which had not previously been reached since hitting $4.026 per gallon the week of May 14. This week’s price matches the previous high of $4.127 per gallon from the week of April 16.

Prior to these recent gains, diesel prices sank for 12 straight weeks, falling a cumulative 50 cents during that period. On an annual basis, the price per gallon of diesel is up 25.9 cents.

In its recently updated short-term energy outlook, the EIA is calling for diesel prices to average $3.84 per gallon in 2012 and $3.62 in 2013 (down from previous estimates of $3.90 and $3.87, respectively), with WTI crude oil expected to hit $93.90 per barrel in 2012 and $90.25 in 2013 (down from previous estimates of $96.80 and $97.00, respectively).

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.

What’s more, shippers have repeatedly told LM they are constantly monitoring fuel prices, as they relate to freight rates and the overall costs of doing business.

And 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.

Crude oil barrel prices on the New York Mercantile Exchange were $94.42 at press time. The Associated Press reported that signs that manufacturing around the globe is weakening, which suggests a drop in fuel demand, weighed on oil prices.