Diesel prices jump up nearly 9 cents, says EIA

With an 8.7 cent increase, the price per gallon or diesel is now at $3.943 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

Diesel prices have gone up in six of the past seven weeks, with prices up a cumulative 20 cents since the week of January 2. Prior to that, prices dropped a cumulative 22.7 cents in the previous six weeks.

Compared to a year ago, diesel prices are up 40.9 cents per gallon, which is down sharply 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.

And the EIA also reported last week that in its Short-Term Energy Outlook the 2012 average for diesel is up six cents from January at $3.91 per gallon, with 2013 pegged at $3.99. The 2011 average was $3.84.

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.

The price per barrel of oil was at $101.46 on the New York Mercantile Exchange earlier today, which remains in line with prices in recent weeks fluctuating around the $100 per barrel mark.

An Associated Press report indicated that while oil has hovered around the $100 mark in recent months amid signs the U.S. economy is improving, crude supplies have been rising which suggests demand remains weak.