While both off-road and on-road diesel fuels have already seen a significant price increase, it could get worse with the Trump Administration’s announcement to withdraw from the Iran Nuclear agreement and a rapidly deteriorating petroleum industry in Venezuela.
Bank of America analysts released a report recently predicting that crude oil, currently at $77 per barrel, could be headed back to $100 in 2019. The last time crude oil was at that level? In 2014, when on-road diesel spiked to nearly $4 per gallon.
Jenna Mignano, manager of Member Services for Michigan Farm Bureau, said members may want to consider utilizing the MFB Forward Fuel Pricing Program, administered through Grand Rapids-based Crystal Flash, to lock in fuel costs now.
Established in 2017, the program allows MFB members to contract projected diesel fuel needs at pre-determined price, with payment due at time of actual delivery.
“That’s significant, given today’s farm economy,” Mignano said. “Our fuel contracting service allows members to lock in a portion of their anticipated fuel needs at a price that works for them, while also preserving cash-flow for current operating expenses.”
According to Mignano, the MFB Forward Fuel Pricing Program applies to both off-road and on-road diesel fuel, and a number of contract options are available, including single or multiple contracts, and monthly or annual usage contracts.
To learn more, Mignano advises members to visit MFB’s website or go to the Commercial Fuel Contracting Interest Form to fill out a Contact Request form and view Commercial Fuel Contracting Scenarios.
“All advertisements embedded in videos posted on YouTube™ are generated by YouTube’s proprietary ContentID™ algorithm. Michigan Farm Bureau is not responsible for the contents of these advertisements and does not endorse the products or services promoted, thereby.”