Diesel prices hit 2016 high, according to Energy Information Administration

The average price per gallon of diesel gasoline increased 3.4 cents this week to a 2016 high of $2.527 per gallon, according to weekly data issued by the Department of Energy’s Energy Information Administration (EIA). The previous 2016 high was reached the week of December 12, when it was at $2.493 per gallon. 

This marks the fourth consecutive weekly increase, with the average price per gallon heading up a cumulative 10.6 cents from the week of November 21 to the week of December 19.

On an annual basis, the average price per gallon is up 24.3 cents, EIA said.

The recent gains in weekly diesel average prices are coming at a time when oil prices have leveled off somewhat. On December 13, the average price per barrel of West Texas Intermediate Crude oil hit a recent high of $52.98 and is currently trading at $51.93 on the New York Mercantile Exchange.

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.