Subscribe to our free, weekly email newsletter!


Transportation news: Diesel prices return to the $3 per gallon mark

By Jeff Berman, Group News Editor
October 05, 2010

After an 18-week respite, the average price per gallon of diesel gasoline is back in $3 per gallon territory, according to data released this week by the Department of Energy’s Energy Information Administration.

For the week of October 4, the EIA reported that average diesel prices are exactly $3 per gallon, representing a 4.9 percent increase from the week of September 27.

In recent weeks diesel prices have been fluctuating, with this week’s 4.9 cent gain preceded by a 1.9 cent decline to $2.960 per gallon for the week of September 20. And prior to that, diesel prices had been trending down since hitting $2.991 the week of August 9, dropping a total of six cents from August 9 to September 6, according to the EIA.

The current average price per gallon of diesel is 41.8 cents higher than it was a year ago, and it is 12.7 cents below the 2010 weekly high of $3.127 per gallon from the week of May 10.

The EIA is calling for 2010 crude oil prices to hit $77.37 per barrel and 2011 prices at $82.00 per barrel, according to its short-term energy outlook. Both figures are below recent estimates of $79.13 for 2010 and $83.50 for 2011. Current oil prices are at $82.30 per barrel as of press time.

The recent upticks in prices may be related to global currency devaluations and disruptions at the largest oil port in France, where workers have been on strike for more than a week, according to a MarketWatch report. 

Prior to this recent uptick, oil and gasoline prices were relatively low due to higher inventories signaling weaker demand and sluggish economic growth. And a recent Associated Press report stated that while the price per barrel had been in the $75 per barrel range since early summer, some analysts expect high crude prices to weigh on prices even if the economy expands more than expected over the next year. 

As LM has reported, even though diesel prices appear to be in check for the time being, freight transportation stakeholders maintain that there is no real rhyme or reason when it comes to assessing the string of rising and falling fuel prices.

Some experts say that the there has never been a period of volatility in fuel prices like there has been in the last year. And with prices currently down by no means indicates prices will stay down or sharply go up.

As oil prices ride the wave of fluctuating prices, a recent Logistics Management reader survey of about 150 logistics, supply chain, and transportation managers found interesting disparities regarding how much shippers’ average fuel surcharges were above their base rates.

The survey revealed that 20 percent felt average fuel surcharges were 6-10 percent above base rates as did another 20 percent say average fuel surcharges were 11-15 percent above base rates. 19 percent said average fuel surcharges were in the 0-5 percent range above base rates, with 17 percent of respondents at 16-20 percent and 9 percent saying average fuel surcharges were 21 percent above base rates.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


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

Lyon, France-based Norbert Dentressangle, a $5.5 billion global third-party logistics (3PL) services provider focused on global logistics, transport, ocean, and air services, said today it has acquired Des Moines, Iowa-based Jacobson Companies, a value-added warehousing (VAW) company, for $750 million from private equity firm Oak Hill Capital Partners.

Download the newly released research report, "Transportation Management Systems" conducted by Peerless Research Group (PRG) on behalf of Supply Chain Management Review and Logistics Management magazines. Learn what logistic experts are saying about their current supply chain technology infrastructures, how they tackle the transportation component, and revealed the gaps that still need to be filled in order to attain end to-end visibility of a streamlined supply chain.

From cost center to growth center. Get insightful opinions on changes in the marketplace from this independent survey of warehouse personnel. Motorola Solutions examined the current warehousing marketplace in our 2013 Warehouse Vision Report, conducted April-May of 2013.

Even though not all publicly-traded less-than-truckload carriers (LTL) have posted second quarter earnings yet, the early consensus for those that have issued results is looking very good.

The advance estimate for second quarter GDP at 4.0 percent could serve as a sign of a steadier and improving economy.

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