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Good News on Fuel Costs

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Good News on Fuel Costs

Dave Speas
Dave Speas

The cost of many inputs for this year’s crop are steady at best; however, one key farm budget items is sharply lower this spring: fuel. Dave Speas, with Countrymark, says fuel costs are likely to remain low for the first half of this year, “Sure looks like the price levels we are at now, we are going to be able to hold on to for at least the first half of this year.” He says taking advantage of these lower fuel prices by locking in some long term contracts might be a good decision, “We do have  price risk management program that allows farmers to lock in fuel deliveries for up to a year or even 18 months.”

Patrick Dehann, with Gas Buddy, says national fuel prices are likely to remain at current low levels, “In the past week, oil inventories reached 500 million barrels — the first time ever. Gasoline stocks are at record levels and even diesel stocks are well above average.” He sees oil prices moving from their current level, but not moving much higher, “I think we will keep oil prices under $45 this year.”

AAA says average fuel prices in Indiana are $1.41 for gas and $1.96 for diesel.