Adding to shipper’s woes regarding increased shipping costs, according to the Energy Information Administration, the National Average price for diesel fuel has soared by 7.1 cents a gallon to reach $3.477 a gallon. That’s the highest price the nation has seen for diesel since the week of Dec. 8, 2014, when it was $3.535 a gallon. There are some significant highlights from this recent report as indicated below.
- The cost of diesel is now $1.09 a gallon more expensive than a year ago.
- Trucking’s main fuel increased in price for the fifth time in the last six weeks.
- The price went up in all 10 regions in which data is tracked, led by a burst of 10.4 cents a gallon in the Midwest.
- The one-week spurt is the largest since a matching 7.1-cent increase from the first week of March, 2021 when it climbed from $3.072 to $3.143 a gallon.
- Surprisingly, the smallest increase was seen in California, where the price went up just 3 cents a gallon. But to no one’s surprise, California’s $4.369 average diesel fuel price is the highest in the land.
- Gasoline increased too but not nearly as severely; a 1.5-cent increase lifted its national average to $3.19.
As we all know, now that we are enter the winter season, we can expect these fuel prices to continue to increase as refiners pump up production of heating fuels. The hit on shipper’s freight budgets will continue to be challenging. Shippers will continue to be challenged to find ways to reduce their shipping expenses which will be a real challenge for sure.
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