Diesel prices see slight increase

Diesel prices returned to growth mode this week, with the average price per gallon heading up 0.7 cents to $2.389 per gallon, according to data released by the Department of Energy’s Energy Information Administration (EIA).

This increase negated a 0.7 cent decrease last week, which was preceded by three weeks of declines of 1 cent, 0.8 cents, and 0.2 cents, respectively, based on EIA data,

On an annual basis, this week’s average price is down 10.3 cents annually.

U.S. West Texas Intermediate Crude Oil is currently trading at $48.81 per barrel, its highest level going back to early July.

A recent Reuters report observed that oil prices are caught between concerns about oversupply and a strong dollar on the as well as the prospect of a potential production freeze, adding that the huge global oil oversupply that has weighed on prices for the past two years may not clear until the second half of 2017.

Shippers are vigilant in keeping a watchful eye on fuel prices, due to the fact that in most modes they’re paying a fairly high percentage in terms of their average fuel surcharge above standard base rates. That was made clear in the findings of a recent Logistics Management (LM) readership study of more than 200 buyers of freight transportation and logistics services.

According to the survey, 5.5% of respondents noted that average fuel surcharges were more than 20% above base rates, with 11.4% noting that they were 16% to 20% higher.

And 17.9% and 24.9% of shippers said they were in the 11% to 15% and 6% to 10% ranges, respectively, with 28.4% stating that their average fuel surcharges were 5% or less above base rates.