Fuel retailer is optimistic diesel prices will come down some
A fuel expert is optimistic diesel prices might soon be less painful on the pocketbook.
Troy Thompson is the Energy Division Manager for ProVision Cooperative based in Wisconsin. He says, “The world market I think is starting to show maybe a little relief on the diesel fuel heading into fall.”
Thompson tells Brownfield the availability of diesel fuel has not been a problem, but they have had minor allocation situations at some of the Flint Hills fuel terminals. “A lot of that is caused by price, so if the price is going up considerably. they may limit you to your daily allocation. Basically, I think it’s to take advantage of a higher price coming up the next day.”
Thompson expects the record-high diesel fuel costs will start to come down, but not yet. “I was looking at futures contracts. Looking at where we’re at today through October, futures contracts are about 35 cents a gallon less right now, and if you go up to November where we’re still doing some harvesting here in Wisconsin, almost 50-55 cents less a gallon.”
Thompson advises farmers to work with their suppliers and try to lock in contracts for both price and gallons since a price-only contract doesn’t guarantee buyers will get the volume of fuel they need at the agreed-upon price. He also says it’s not too early to think about fall and winter propane needs.