Diesel prices stay above $4 per gallon for second straight week

A week agodiesel priceseclipsed the $4 per gallon mark for the first time since the week of November 21. It now looks like those prices may be around to stay for a while.

The price per gallon of diesel increased 4.3 cents to $4.094 per gallon for the week of March 5, according to the Department of Energy’s Energy Information Administration (EIA).

This follows a 9.1 cent bump last week, which topped the $4.01 per gallon mark from November 21. This week’s price is the highest since the week of May 2, which was $4.124 per gallon.

The price per gallon of diesel fuel has gone up in eight of the last nine weeks, with prices rising a cumulative 31.1 cents during that span. Cumulative prices dropped 22.7 weeks in the six weeks leading up to that.

On an annual basis, the price per gallon is up 22.3 cents, which is down sharply from comparisons in the mid-80s range just a few months ago. And while prices have largely been trending down prior to this recent increase, shippers have maintained that they are forecasting for steady fuel increases in their supply chain and transportation budgets should diesel prices continue to hover near or at the $4 per gallon mark.

The EIA recently reported that in its Short-Term Energy Outlook the 2012 average for diesel is up six cents from January at $3.91 per gallon, with 2013 pegged at $3.99. The 2011 average was $3.84.

As LM has reported, shippers continue to take steps to minimize the impact of fluctuating fuel costs. Over the years, they have maintained that this is imperative as higher diesel prices have the potential to hinder growth and increase operating costs, which will, in turn, force them to raise rates and offset the increased prices to consumers.

The price per barrel of oil was at $106.72 on the New York Mercantile Exchange earlier today, which is down from recent days. An Associated Press report indicated that prices are down slightly due to concerns about global economic growth and crude demand outweighing the supply risks posed by the prolonged tensions over Iran’s nuclear program.