Diesel prices continue steady rise to kick off 2017

The average price per gallon of diesel gasoline began 2017 right where 2016 ended, in that the price keeps going up.

Coming off of a 2.7-cent increase to $2.54 per gallon the week of December 26, which was a 2016 high, the average weekly price shot up another 4.6 cents this week to $2.586 per gallon, according to data issued this week by the Department of Energy’s Energy Information Administration (EIA).

Diesel prices have now seen gains for the last six weeks, rising a cumulative 16.6 cents from the week of November 28 to the week of January 2.

On an annual basis, the average price per gallon is up 37.5 cents.

The average price per barrel of West Texas Intermediate Crude is currently trading at $52.49 per barrel on the New York Mercantile Exchange, which is up 9 cents compared to yesterday.

Prices are higher today, due to expectations that U.S. crude inventories are falling, coupled with signs that oil producers will stick to agreed output cuts that went into effect this week, according to a Reuters report.

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.