Oil plunge not expected to help lower diesel prices
An economist says farmers should not expect much lower planting costs because of the recent crash in petroleum prices.
Scott Irwin with the University of Illinois says, “Less than a dollar to $1.25 to $1.40 is kind of where I think gasoline prices around the country are headed but diesel won’t go down nearly as much.”
Irwin tells Brownfield the COVID-19 outbreak and the stay-at-home orders have greatly reduced automobile travel but the fuel most farmers use still has high demand on the highways. “Diesel usage is not off nearly as much as gasoline use. Just go out, you see the trucks are tending to continue to roll whereas commuters and car traffic is down a lot more.”
Irwin says diesel fuel is the key cost factor for farmers during planting season, and without demand change or price movement for diesel, farmers won’t save money on one of their biggest expenses.
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