National Diesel Average Jumps 6¢ to $2.37
The U.S. diesel average price rose 6 cents to $2.37 per gallon last week, according to the Department of Energy, even as the price of crude oil fell back amid talk of increased production.
It was the largest jump in prices since May 2 when diesel jumped 6.8 cents, and was the first rise after seven consecutive weeks of declines, DOE said after its Aug. 22 survey of fueling stations. It is 19.1 cents cheaper than it was a year ago when the price was $2.561.
Diesel rose in all regions.
Paper Transport Inc. has a strategy of managing the cost of fuel from the truck cab by coaching drivers’ performance behind the wheel, said Jeff Shefchik, the company’s president.
“We have a miles-per-gallon bonus in place for all of our drivers. So the coaching can only help with their paycheck. I think that plays a big part in us achieving the fuel economy we get. Not only does it help the company, but it helps them,” he said.
The top drivers at the Green Bay, Wisconsin-based truckload carrier will earn an extra $300 a month in the program with better fuel efficiency, he said.
The U.S. average price of regular gasoline rose 4.4 cents to $2.193 a gallon, 44.4 cents cheaper than a year ago, DOE’s Energy Information Administration reported. It was the first rise after nine declines in a row for gasoline.
All regions posted higher gasoline prices, EIA said.
Meanwhile, crude oil futures on the New York Mercantile Exchange closed at $47.05 per barrel Aug. 22. That price compared with $48.52 on Aug. 19, the peak price to date for the month.
Oil slumped as Iraq sought to increase exports amid a global oversupply and Nigerian militants called an end to hostilities.
“Because of the fiscal position many oil producers find themselves in, they all desperately want to produce more volume,” Stephen King, senior economic adviser to HSBC Holdings in London, said in a Bloomberg Television interview. “A freeze in itself would be very good news for the oil market. The difficulty is trying to enforce a freeze in any particularly credible way.”
U.S. average #Diesel fuel price on 8/22/16= $2.370/gal, UP $0.06 from week ago https://t.co/L9ya6vrQbM #truckers pic.twitter.com/5puI7QBfNF — EIA (@EIAgov) August 22, 2016
