Subscribe to our free, weekly email newsletter!


Diesel prices stay above $4 per gallon for second straight week

By Staff
March 06, 2012

A week ago diesel prices eclipsed the $4 per gallon mark for the first time since the week of November 21. It now looks like those prices may be around to stay for a while.

The price per gallon of diesel increased 4.3 cents to $4.094 per gallon for the week of March 5, according to the Department of Energy’s Energy Information Administration (EIA).

This follows a 9.1 cent bump last week, which topped the $4.01 per gallon mark from November 21. This week’s price is the highest since the week of May 2, which was $4.124 per gallon.

The price per gallon of diesel fuel has gone up in eight of the last nine weeks, with prices rising a cumulative 31.1 cents during that span. Cumulative prices dropped 22.7 weeks in the six weeks leading up to that.

On an annual basis, the price per gallon is up 22.3 cents, which is 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.

The EIA recently reported that in its Short-Term Energy Outlook the 2012 average for diesel is up six cents from January at $3.91 per gallon, with 2013 pegged at $3.99. The 2011 average was $3.84.

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 of oil was at $106.72 on the New York Mercantile Exchange earlier today, which is down from recent days. An Associated Press report indicated that prices are down slightly due to concerns about global economic growth and crude demand outweighing the supply risks posed by the prolonged tensions over Iran’s nuclear program.

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!

Recent Entries

Join Industry Expert Adrian Gonzalez for this educational webinar on the tenets and the benefits of Closed-Loop Operational Management. You’ll learn how Closed-Loop Operational Management optimizes orders, inventory, and transportation concurrently, and how it is able to optimize large-scale problems on a daily basis.

In a separate conference call following CP’s third quarter earnings release call yesterday, CP CEO Hunter Harrison make myriad convincing points for a merger between CP and CSX and offered up his take in general industry M&A as well.

Seasonally-adjusted (SA) for-hire truck tonnage in September checked in at 132.6 (2000=100) for the second straight month, remaining as the current all-time high level for the second month in a row, with November 2013’s 131.0 now the second best month recorded.

Ahead of its third quarter earnings call this Friday, freight transportation and logistics titan UPS rolled out rate increases for 2015 that are set to take effect on December 29, 2014.

The 'Internet of Things' or IoT is a term that has rapidly taken center stage in business and consumer technology circles, with tremendous amounts of hype in both. Don't be distracted if some of the hypothetical consumer examples of the IoT seem far-fetched; the trend has serious implications for businesses. This complimentary whitepaper takes a look at some of the opportunities afforded by the Internet of Business Things.

Article Topics

News · Logistics · EIA · Diesel Prices · Diesel · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA