Diesel prices move up another 2.1 cents per gallon

Another week brought another increase in the price per gallon of diesel, with prices rising 2.1 cents this week to $3.534 per gallon, according to the Department of Energy’s Energy Information Administration (EIA). On an annual basis, diesel prices are up 77.8 cents.

By ·

Another week brought another increase in the price per gallon of diesel, with prices rising 2.1 cents this week to $3.534 per gallon, according to the Department of Energy’s Energy Information Administration (EIA). On an annual basis, diesel prices are up 77.8 cents.

Diesel prices have gone up for 11 straight weeks for a cumulative 37.2 cent gain, coupled with prices being above $3.40 per gallon for the fifth straight week since reaching $3.482 during the week of October 20, 2008. Current prices are at their highest level since reaching $3.659 the week of October 13, 2008.

This week’s price also represents the 20th consecutive week prices have been at $3 per gallon or more. Prior to the week of October 4, when diesel prices hit $3.00 per gallon, the price per gallon of diesel was below the $3.00 mark for 18 straight weeks. Meanwhile, the price per barrel of oil is currently trading at $85.53 on the New York Mercantile Exchange as of press time, following a two-year high when prices were over $92 per barrel, due to unrest over the political crisis in Egypt.

Even with oil trading down recently, some experts maintain that the price per gallon of diesel and regular gasoline could approach the $4 per gallon level, due to things like higher global demand for oil and a cold winter in many parts of the United States and Europe, leading to higher oil prices.

And as LM has reported, this could to a scenario where shippers need to be prepared to plan for higher energy prices, especially when taking into consideration the relatively low fuel prices they factored into transportation budgets for much of 2010.

The EIA is calling for 2011 crude oil prices to hit $93.26 per barrel, according to its recently-revised short-term energy outlook. This is above a previous estimate of $85.17 per barrel for 2011.  On the diesel side, the EIA is calling for the price per gallon of diesel in 2011 to average $3.43, up from a previous estimate of $3.40. 

Michael A. Regan, CEO & Chairman of the Board, TranzAct Technologies, wrote in a recent blog entry for LM that these ongoing diesel increase could have a hazardous effect on shippers’ freight budgets.

Regan explained that “shippers could be paying as much as 15% to 20% more for freight than they did in 2010 (depending on their fuel surcharge calculation).”

But Tom Kloza, chief oil analyst with the Oil Price Information Service said in an AP report that it would be a mistake to assume a repeat of 2008’s high gas and oil prices is s given.

Kloza explained that gasoline has climbed since November because of a temporary combination of forces that pushed energy prices higher, including stronger oil demand from China, a frigid winter in the United States and tension in Egypt, calling these events “a perfect storm.” He also predicted that crude demand will slide in the United States by May as refineries slow fuel production while they switch to summer blends of gas.

For more articles on diesel prices, click here.


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

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!

Article Topics

Diesel · Diesel Prices · EIA · Transportation · Trucking · All Topics
Latest Whitepaper
Logistics Network Analysis
Logistics network monitoring is an important step in understanding what actually occurs throughout your supply chain.
Download Today!
From the January 2018 Logistics Management Magazine Issue
Industry experts agree that costs across all sectors worldwide will continue to rise in 2018, and the most successful shippers will be those that are able to mitigate their impact on profitability. And, the right technology will play an increasingly vital role in driving efficiencies across the global logistics network.
The Future of Retail Distribution
Navigating the Reverse Supply Chain for Connected Devices
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
IAM, IoT and the Connected Supply Chain
There are three primary models of Identity and Access Management (IAM) technology that CTOs, CSOs, and Supply Chain executives are using to enhance their trading partner communities. While each leverages IAM and the IoT as core components only an “Outside-in” approach truly connects people, systems and things reliably and securely across the supply chain.
Register Today!
EDITORS' PICKS
State of Global Logistics: Delivering above and beyond
Industry experts agree that costs across all sectors worldwide will continue to rise in 2018, and...
2018 Rate Outlook: Economic Expansion, Pushing Rates Skyward
Trade and transport analysts see rates rising across all modes in accordance with continued...

Building the NextGen Supply Chain: Keeping pace with the digital economy
Peerless Media’s 2017 Virtual Summit shows how creating a data-rich ecosystem can eliminate...
2017 NASSTRAC Shipper of the Year: Mallinckrodt; Mastering and managing complexity
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships...