Diesel Fuel Prices Might Make a Turn Lower

This week the DOE reported, diesel fuel prices fell for the second time in three weeks — but just the third since early January — dropping 2.1 cents to $4.127 a gallon. Gas prices meanwhile, fell for a second straight week, dropping 1.7 cents to $3.922.

Diesel fuel prices are now 2.2 cents higher than the same week a year ago, while gas prices are 7.8 cents higher. It feels like its a lot higher to most fleet fuel buyers. I don’t know if it was the panic when fuel prices increased rapidly in January or something in the air.

Last week’s $4.148 diesel price was the highest since trucking fleet fuel was $4.208 on Aug. 18, 2008. Monday’s diesel fuel decline was the biggest this year — the most since a 3.7-cent downturn on Dec. 26. Gas price was the biggest since a 5.7-cent drop on Dec. 19.

Diesel fuel prices have gained a cumulative 34.4 cents since registering a year-low $3.783, on Jan. 2. So are we heading up or down with gas and diesel fueling. It appears that we might have hit the peak and are making a turn downward in fleet fueling prices.

Supply for products are good despite the fact of Iran. Crude oil prices have gone down over the last few weeks and I think we are seeing retail gas stations and truck stops trying to grab margin if possible. We are still 6 plus weeks away from “peak driving season” so anyone in the retail fuel business will try and ride that wave for as long as they can.

If things can get a little better with Iran. I think we could see a 25 cent drop in diesel fuel and gas prices within weeks. For our fuel cards mag stripes and your businesses fuel management budget, let’s hope that happens.

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