Gasbuddy Gives Optimistic Diesel Market Outlook

A fuel economist says diesel prices have softened recently and the outlook is favorable for farmers moving forward.

“We saw a pretty expensive 2023 for diesel, although it was an improvement to 2022,” said Patrick De Haan, head of petroleum analysis at GasBuddy.

De Haan told Brownfield Ag News that warmer than expected weather last winter has reduced demand for heating oil. “That’s allowed diesel prices to start 2024 below the $4.00 per gallon mark, and that’s where we find prices today at about $3.87. I’m expecting that 2024 will bring further improvement to the average price of diesel over 2023.”

He says other ag inputs are also trending lower. “Some of the inflationary pressures have really moved back to disinflation with energy being a big part of that.” De Haan says there has also been an improvement in refining capacity.

EDITOR’S TAKE:

Very good news for farmers as well as truckers across the country. Farmers/ranchers operate most of their equipment on diesel, a major expense item for most. Reductions in diesel prices will help farmers/ranchers improve their margins and profitability. However, they also remain concerned about the elevated cost for other inputs for their operations. Now might be an excellent time to remind them about AgPack®. AgPack® could save them up to $32,000 in operating costs through exclusive rebates and discounts. Even better news – it comes on top of any other incentives offered by your dealership or the OEM. If you haven’t looked lately, visit www.certifiedagdealer.com and look for the AgPack® offers. You will be amazed!