Looking to be a positive overall outcome, retail diesel fuel prices have dipped for the second straight week from $4.13 per gallon to $4.088. The US Energy Information Administration expects the diesel prices to continue to decline for the next two years, which studies have shown that this will reduce truck fleets annual fuel costs by as much as $5,700 per rig. This is great news for car carriers and their drivers because it seems that the cost of everything else in steadily increasing, other than their pay checks.
According to the EIA, the 4.2-cent dip in diesel prices last week was less than fuel costs were back in 2012 at this same time. To ice the cake, prices were actually increasing at this time last year from $4.123 a gallon and up.
|US Oil Production Increases, Paving Way to |
Lower Fuel Costs
Once gas prices hit $4.051 in February of 2012, prices didn't drop below the $4 mark until the middle of May 2012. Mid-March of 2013 was the first time since November of 2012 that diesel prices have been cheaper than the prior year.
Not only did diesel prices drop but gasoline prices did as well. Last week’s fuel prices were $3.759 and have since dropped this week to $3.71 per gallon, much less than last year’s prices at the comparable time. Car shipping customers and other customers alike will also enjoy the splendors of lowed fuel prices.
Phil Flynn, an analyst of the Price Futures Group in Chicago, states that steady oil markets are putting less pressure on diesel prices at the same time winter demand is easing up on crude oil used in both diesel and heating oil.
|US Fuel Prices Finally Dropping in 2013|
Crude oil closed out on March 14 at $93.03 whereas one year ago it was at a staggering $106.71. The steady production of oil in the U.S. is making natural gas a quality option in the auto transportation industry being that both factors are beginning to affect diesel costs.
In the EIA’s short-term oil price report that was released on March 12, retail costs of diesel is anticipated to drop to $3.90 in 2013 from the previous $3.97 in 2012 and will drop even more to $3.80 in 2014. “U.S. crude oil production exceeded an average level of 7 million barrels per day in November and December 2012, the highest volume since December 1992,” the EIA report said.
It’s a recurring search for new ways and technologies to decrease fuel consumption and increase gas mileage, but after the ten year long search it is finally paying off.
For more information on vehicle shipping or industry related topics, call N-Motion Auto Transport today at 1-855-407-4160.