News and Press
23
06
2016

Shippers Welcome Decline in Diesel Fuel Prices

by LPS Insights, on June 23, 2016

[vc_column_text delay="0"]“After gains in 16 of the last 17 weeks, the average price per gallon of diesel saw a decline this week (June 20, 2016), according to the Department of Energy’s Energy Information Administration (EIA).

 

Falling 0.5 cents to $2.426 per gallon, the average price per gallon is down 43.3 cents annually. And since diesel eclipsed the $2 per gallon mark, hitting $2.021 during the week of March 7, it has gone up a cumulative 40.0 cents.

 

Before increases in 16 of the last 17 weeks, diesel was down for several weeks.

Shippers said that the decreases in diesel costs over that stretch was beneficial from a financial perspective, and after several years of high fuel costs, many shippers began tracking diesel much more closely.”

 

In this article from Logistics Management, author Jeff Berman reminds readers that in the past, diesel fuel cost more than gas, primarily because refineries export a lot of their output. With less diesel available in the U.S., naturally, prices are higher. But with demand for both gas and diesel at an all-time high, supplies have risen around the world, which is driving down retail prices everywhere.

 

Lower fuel costs are welcome news for shippers who are already benefiting from lower prices impacted by an abundance of trucks and carriers.

 

Read the full article for more detail in Logistics Management:

 

Diesel prices see decline after gains in 16 of last 17 weeks[/vc_column_text]

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