Diesel prices slip but remain above $4 per gallon mark, says EIA

Diesel prices dipped $0.5 cents to $4.142 per gallon but remained over the $4 mark for the sixth straight week, according to the Department of Energy’s Energy Information Administration (EIA).

The previous week—ending March 26—at $4.147 represented the highest level in three-and-a-half years, topping $4.145 per gallon from the week of August 25, 2008, when diesel prices were on the way down from record highs just weeks earlier, with the week of July 14, 2008 representing the apex for diesel prices at $4.764 per gallon.

This week’s $0.5 cent decrease is the first time in the last ten weeks that prices have declined, with prices also being up in 11 of the previous 13 weeks, having risen a cumulative 35.9 cents in that period, according to EIA data.

On an annual basis, the price per gallon is up 16.6 cents, 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.

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 for oil is currently at $104.33 on the New York Mercantile Exchange. An Associated Press report noted that prices are down due to mixed signs about the strength of the global economy.