Diesel prices increase for the fifth straight week, reports EIA

The Department of Energy’s Energy Information Administration (EIA) reported this week that the average price per gallon of diesel gasoline increased for the fifth straight week, rising 0.8 cents to $2.944 per gallon.

This follows recent gains of 3.6 cents, 3.5 cents, 3 cents and 0.4 cents, with prices up a cumulative 11.3 cent increase in the average diesel price over the last five weeks.  And this five-week stretch of gains now marks the longest stretch of weekly increases, going back to the five-week period ending February 24, 2014, when prices headed up a cumulative 14.4 cents.

The current diesel price is at its highest level since the week of January 12, when it was at $3.053 per gallon. On an annual basis, the average price per gallon of diesel is up $1.077.

A recent Logistics Management reader survey found that nearly 75 percent of the roughly 100 surveyed respondents said they do not expect a material increase in the form of higher fuel surcharges in the coming months, with the difference split between those whom said they felt fuel surcharges would increase or that they were unsure.

But, conversely, another 55.4 percent indicated that they planned to raise or adjust their freight budgets to cover higher than budgeted fuel prices should fuel prices continue to head up going forward.

As for how much freight budgets would need to head up, the results varied with: 51 percent saying between 1-5 percent; 32.7 percent saying between 6-10 percent; 6.1 percent saying 11-15 percent; 4.1 percent saying 16-20 percent; 2 percent saying between 21-50 percent, and 4.1 percent saying 100 percent.