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