Weekly diesel price average sees sharp increase, reports EIA

The average price per gallon of diesel gasoline increased six cents this week to $2.480 per gallon, according to weekly data issued by the Department of Energy’s Energy Information Administration (EIA).

This sharp increase follows recent weeks of mild price fluctuation on the heels of a 0.1 cent decline, a 0.1 cent increase, and a 0.3 cent decline over the previous three weeks, respectively.

On an annual basis, the average price per gallon jumped 6 cents.

West Texas Intermediate Crude is currently trading at $50.54 per barrel on the New York Mercantile Exchange today, which is within range of the 52-week high of $53.72.

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 (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.