Subscribe to our free, weekly email newsletter!


Diesel prices inch down for first time in three weeks, according to EIA

By Staff
January 24, 2012

Diesel prices dipped slightly this week, falling 0.6 cents to $3.848 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

This represents the first decline in the last three weeks, with the previous two weeks accounting for a cumulative 7.1 cent gain.

On an annual basis, diesel is up 41.8 cents per gallon, which is down from comparisons in the mid-80s range just a few months ago. And while prices have largely been trending down prior to this recent increase, shippers have maintained that they are forecasting for steady fuel increases in their supply chain and transportation budgets should diesel prices continue to hover near or at the $4 per gallon mark.

As LM has reported, 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.

And when fuel prices see steady gains, the focus from a supply chain management perspective, tends to be more on utilization and efficiency by doing things like driving empty miles out of transportation networks, shippers told LM.

The price per barrel of oil was at $99.20 on the New York Mercantile Exchange earlier today. An Associated Press report stated that uncertainty over a Greek debt deal offset concerns that Iran could block shipments of crude in the wake of the European Union’s decision to embargo imports of Iranian oil.

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

Total POLB volumes dropped 9.1 percent in August at 573,083 TEU, and POLA volumes in August were up 6.7 percent compared to August 2013 at 757,702 TEU.

Following a week in which the average price per gallon was flat, diesel prices resumed their decline, falling 1.3 cents to $3.801 per gallon, according to the Department of Energy’s Energy Information Administration.

Read how others are using Business Process Modeling to implement Microsoft Dynamics AX with reduced risk.

While diesel prices have largely been out of the spotlight in 2014, freight transportation and logistics stakeholders always need to keep a close eye on what prices are doing, as it has a significant impact on transportation budgets and forecasting.

Railroad service issues and rates, which many rail shippers deem as unreasonable, are front and center in a piece of legislation to be introduced soon by Senators Jay Rockefeller (D-WV) and John Thune (R-SD), chairman and ranking member of the Senate Committee on Commerce Science and Transportation.

Article Topics

News · EIA · Diesel Prices · Diesel · All topics

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA