Diesel Price Outlook for Fall 2024

A fuel economist says diesel prices have been dropping and farmers should consider locking in their fall supplies.

Patrick De Haan, head of petroleum analysis for GasBuddy, says, “I think sometime at the end of June or early July is probably the best window of opportunity.”

He expects prices to fall up to 25 cents per gallon over the next four-to-six weeks. “Keep in mind that diesel prices tend to trend lower going into the summer before they start rising again in August and September.”

De Haan says the diesel market has significantly recovered from record prices that were seen during the summer of 2022.  AAA data shows the national average peaked at $5.81 per gallon that year. “A lot of the price of diesel at that time was because of Russia’s war in Ukraine and the explosion in the U.S. economy.” He says any potential refinery issues could disrupt the market.

EDITOR’S TAKE:

Good news for anyone using diesel fuel, especially farmers/ranchers. Locking in lower prices, thus, reducing input costs for the fall, will certainly help improve profitability. This is especially important in a year where farm income is already forecast to be below 2023 levels. However, this only means you should continue to promote deals on parts and service. Put AgPack® front and center, and be sure to mention CADFI as a means to help smooth out cash flow for your farm/ranch customers.