Diesel prices rise for eighth straight week, remain over $4 per gallon
August 28, 2012
The price per gallon for diesel gasoline has only been heading in one direction lately—up.
The Department of Energy’s Energy Information Administration (EIA) reported this week that prices increased for the eighth straight week, rising 6.3 cents to $4.089. This is the highest price per gallon for diesel since hitting $4.127 the week of April 16.
Diesel prices topped the $4 mark last week at $4.026 for the first time since reaching $4.004 the week of May 14.
Prior to these recent gains, diesel prices sank for 12 straight weeks, falling a cumulative 50 cents during that period. On an annual basis, the price per gallon of diesel is up 21.6 cents.
In its recently updated short-term energy outlook, the EIA is calling for diesel prices to average $3.84 per gallon in 2012 and $3.62 in 2013 (down from previous estimates of $3.90 and $3.87, respectively), with WTI crude oil expected to hit $93.90 per barrel in 2012 and $90.25 in 2013 (down from previous estimates of $96.80 and $97.00, respectively).
Regardless of the fluctuation in diesel prices, shippers are cognizant of the impact diesel prices can have on their bottom line—for better or worse. And they continue to be proactive on that front, too, by taking steps to reduce mileage and transit lengths when possible as well as cut down on empty miles.
What’s more, shippers have repeatedly told LM they are constantly monitoring fuel prices, as they relate to freight rates and the overall costs of doing business.
And 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.
Crude oil barrel prices on the New York Mercantile Exchange were $95.42 at press time. The Associated Press reported that prices remained stable as the threat to production in the Gulf of Mexico from Tropical Storm Isaac appeared to lessen.
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