Some farmers and ranchers across the Corn Belt have expressed concerns about the price and availability of diesel heading into winter. Fuel supplier Mansfield Energy, based in Georgia, recently issued an alert saying diesel shortages could be possible in the Southeastern part of the country.
Eastern Iowa farmer Lance Lillibridge says a limited diesel supply adds to uncertainties producers are already facing. “They are saying we have a 25-day supply of fuel. From what I understand, most generally, we have about a 50 or 60-day supply of fuel, and we’re cutting that supply in half. That’s getting dangerously low in my opinion,” said Lillibridge.
While U.S diesel supplies are tight, GasBuddy’s Patrick De Haan says there’s no need to panic. “Basically, it just tells us that right now refineries are having a tough time keeping up with demand, but it does not mean you are going to have to go station-to-station trying to find diesel fuel.”
The national average price of diesel is $5.30 per gallon, according to AAA.
EDITOR’S TAKE:
A policy decision to switch in mid-stream from fossil fuels to renewable sources has shocked the energy system in many intended and unintended ways. That said, one thing is clear, it has raised prices and concerns over availability. Diesel, in particular, has seen sustained price increases as a result of this sudden policy shift.
Despite the higher prices, oil processors are reluctant to increase capacity via new plants because they are also uncertain what will become of their investment. Until we have a more coherent energy policy that provides a smoother glidepath for future energy sources and more clarity and certainty in the marketplace, we will likely experience increased concern and volatility in supply and pricing for diesel.
How can you help? Your service and parts departments can help keep those diesel farm/ranch trucks in tip-top shape. Help them maintain or improve their efficiency and mileage. Offering a special on tune-ups along with a multi-checkpoint inspection of the vehicle can help to avoid unforeseen breakdowns. OR, perhaps you can convince them to purchase or lease a new or qualified used vehicle to replace that gas or diesel guzzler they are driving now. That would be cause enough to put your inventory and specials on AgTruckTrader.com today!
