Diesel prices up for first time in 8 weeks
January 24, 2013
The average price per gallon for diesel gasoline went up for the first time in eight weeks this week, according to the Department of Energy’s Energy Information Administration.
The price saw a 0.8 cent increase to $3.902 per gallon. Prior to this increase, prices had been down for seven straight weeks and for 12 of the previous 13 weeks. The previous weekly increase came during the week of November 26, when it saw a 5.8 cent bump.
Since reaching a more than four-year weekly high of $4.15 per gallon the week of October 15, diesel prices have gone down a cumulative 24.8 cents. What’s more, prices have been below the $4 per gallon mark for seven consecutive weeks.
The average price per gallon is up 5.4 cents compared to a year ago at this time.
In its recently updated short-term energy outlook, the EIA is calling for diesel prices to average $3.97 per gallon in 2012 and $3.84 in 2013, with WTI crude oil is expected to hit $94.26 per barrel in 2012 and $88.38 in 2013.
As previously reported, 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.
And even through shippers want to adjust budgets in order to offset the increased costs higher fuel prices bring, it is not always an easy thing to manage.
The focus from a supply chain management perspective, according to shippers, is more on utilization and efficiency by doing things like driving empty miles out of transportation networks.
Shippers have told LM that adjusting budgets is only part of the solution when it comes to dealing—and living—with fuel price fluctuation.
Low diesel prices are expected to continue to be the norm for the foreseeable future.
The EIA recently said that it estimates gasoline prices are expected to drop more than 5 percent in 2013, coupled with rising less than inflation over the next decade.
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