Diesel prices rise 4.5 cents, according to EIA data

Following a six-week stretch in which the price per gallon for diesel gasoline headed down, priced headed up 4.5 cents this week to $3.828 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

Prior to this increase, the price per gallon had dipped a cumulative 22.7 cents over the previous six weeks. Prior to that decline, prices were up 12.3 cents over the previous two weeks. Last week’s average price per gallon of $3.783 was the lowest level diesel prices had hit since coming in at $3.721 per gallon the week of October 10.

On an annual basis, diesel is up 49.5 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.

That much was made clear in the results of a recent Logistics Management reader survey, which found that nearly 40 percent of 344 respondents said their average fuel surcharges are 20 percent or more above base rates. 

At a time when supply chain expenditures clearly remain top of mind, 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 $103.23 on the New York Mercantile Exchange earlier today, marking its first increase in the last four days. A Bloomberg report said that this increase is due in part to growing concern that geopolitical tension in the Middle East may disrupt supply and as higher stock markets raised economic optimism.