Diesel Prices Hit Another Record – Supplies Vulnerable

Record high diesel prices are having rippling effects throughout the ag industry. “We are back to setting new records for the price of diesel on a near daily basis,” said GasBuddy’s Patrick De Haan.

According to De Haan, the national average hit $5.63 per gallon on Monday and a diesel shortage could be looming.

“A refinery kink or a hurricane could disrupt that very much last-minute delivery of things like diesel,” De Haan said. “There is the possibility that we could see some issues with diesel this summer.”

South-Central Nebraska farmer Doug Saathoff says the outlook is uncertain. “I haven’t looked into booking for next year,” he said. “We’ve just got to see something change drastically in the price.” He’s absorbing the sticker shock wherever he can. “Maybe less trips through the field, trying to watch our soil moisture so we can maybe cut down on a few irrigations.”

De Haan says supplies are 25 percent below the five-year average because of a shortage in refining capacity.

Editor’s Take:

The escalating prices of gas and diesel are of concern to every consumer and not the least of which are farmers/ranchers. Virtually every piece of power equipment and large trucks on the farm or ranch are powered by diesel. And, we only become more vulnerable to outside, exogenous shocks by dipping into our strategic reserves simply to bring the price down temporarily for political purposes. The real answer to increasing availability and lowering price is to increase domestic production of oil. That does not appear to be in the cards anytime soon. This is a great opportunity for CAD members to help farmers and ranchers by taking your service and parts to them whenever possible. A mobile service unit is a great idea to keep them running smoothly and efficiently. You can play an important role and save that farmer/rancher time and money!