Diesel Prices Rise 1.3 cents

Following a six-cent increase a week ago, the average price per gallon for diesel gasoline rose 1.3 cents to $2.493 per gallon, according to weekly data issued by the Department of Energy’s Energy Information Administration (EIA).

Compared to the same week a year ago, the average price per gallon is up 15.5 cents, more than double the six-cent annual gain last week.

West Texas Intermediate Crude oil is currently trading at $53.06 on the New York Mercantile Exchange, which was down from a 17-month high of $54.51 yesterday.

A Reuters report noted that global oil prices are down, with data showing crude output headed up in most major export regions even though OPEC and Russia plan to cut production, which it said is “triggering fears” that the glut could last well into 2017.

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 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.

Related Article: Liquefied Natural Gas Could Displace Diesel Oil as Top Transportation Fuel