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I've been reading a Thread on NAT about diesel fuel prices. Obviuosly fuel prices a signifacantly cheaper on the USA side of the border vs Canada. What I found particularly interesting is that producers could forward price / order / book their fuel prices for an entire season similar as to what is done with fert. I have asked numerous suppliers about booking / prebuying fuel to no avail. Even tried getting a price based on X # of cents over Rack price to try and get some price transparency. This would be similar to pricing grain of a futures price less the basis. No luck. The only way to lock in a price is to have large storage and take physical delivery of the fuel. I'm assuming maybe very large fuel users may be able to get this type of pricing. I'm not sure whats different between the US and Canadian fuel industry. Is it that in Canada there are only a few fuel companies hence no competition and therefore they don't need to offer a mechanism to price / hedge fuel prices. The current system where the retailer makes a deal based on X cents discount of the price is ultimately not transparent and is ripe for all kinds of manipulatuion. Obviously having this is not in the interest of fuel companies. Has anyone had any luck forward pricing / contracting fuel prices in Canada.
 

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I was running the numbers and some of them say 60cents cdn/liter. About the best deal I can get I taking deliver now and paying in May from coop. Think Ufa is 2 cents cheaper and don’t pay till November. Crazy that diesel hasn’t hardly dropped here.
 

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bmich you have it exactly right, no accountability in the system and doubt there is any real serious competition either. I've been bugging them to do a pre-buy for a long time now but nothing has happened, I hope everyone starts bugging them!

Not sure how much of our higher price is related to taxes, but it's probably some. When I checked a couple days ago it was 78 cents/liter. I've had good luck filling in March and then in summer to avoid the busy seasons, they always seem to increase price in busy season. Feb-March seems to usually be the best time to buy. I have two large tanks and I'm sure they have easily paid for themselves by now in under 10 years. Seems they want the farmer to build the storage but at least there has been some incentive to do so.
 

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My local co-op has a 6 month "price guard" program for gas, diesel and heating oil through UPI Inc. The contract fee is 3.5 cents/liter times # of liters booked. You pay whatever the price at time of delivery is up to a maximum of 4 cents/liter above the booked price. Also have a 12 month contract with a cap of 4.2 cents/L If the price drops, you pay the lower price. This for delivered fuel, there is an additional 4 cent/L if purchased at an FS cardlock anywhere in Ontario. They have offered the booking service for a few years now but it used to be cheaper with the contract costing 2 cents and the cap was 2 cents.
 

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UFA used to have pre buy options but they stopped because they were loosing profits and they didn’t need to do it to be competitive. Not enough competition there’s really only a few fuel companies in Alberta that supply all the bulk fuel. I remember dad saying we were like $0.20 under the daily price on diesel because of the good pre buy pricing.
 

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No option here to lock up or pre buy diesel, I have to order and take delivery immediately and get spot pricing. I can do some delayed pricing if I take over 21,000 gallons, but nothing on smaller quantities in my area.
 

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Just paid .7896 for dyed diesel for 1000 gal delivery. Dyed gas .8036/clear gas .9399 for delivery. I checked because gas in the pumps was down to .789, cheaper than bulk. But not to worry, bulk jumped to over 1.00 the next day for dyed gas. They are saying the low price is because of high levels of inventory at the refinery. So by having storage it is pretty easy to save 22 cents a liter when price is there. Bulk storage seems to be necessary. CO-OP used to have pricing in the winter for summer fuel when it came available in April and through the summer. What is the opinion on the difference between summer/winter diesel with the new synthetic fuel. There used to be 10-20% loss in power with lighter winter fuel. So even if you were buying 15 cent cheaper winter fuel, you just used that much more fuel. There does not seem to be the difference in diesel now?

In 1972 I hauled bulk fuel for the local ESSO agent. Dyed gas was .21cents a gallon, clear gas was .36c a gallon. The road tax therefore was .15 cents, or a 71% increase that actually went to building roads. Today that increase is only 17% and it is obviously not going to building or fixing roads. Why are we paying road tax on farm fuel??

Another comparison is in 1972 with 19 cent a gallon diesel, or 4.1 cents per liter, we were selling barley for a dollar or two a bushel. Today diesel is .79 cents or more and barley is 4-5.00. Takes a lot more barley to fill the tank!! Up to 8 times as much.
 

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We are taking delivery today and next week of summer diesel, $.82/liter. I don’t have near enough storage though.

What’s everyone using for large storage ?
Westeel, meridian, magnum ?
Hopper bin with liquid kit ?
Or ?
 

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I have a 5,000 gallon bladder that works for extra storage. Not sure if it meets new code though!!! Works really well as there is no breathing for condensation to get in.
 

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We are taking delivery today and next week of summer diesel, $.82/liter. I don’t have near enough storage though.

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Bugger me! 82c Cad/ltr!!!! Thats 86.3c Aud.
My last delivery a week ago was 131c/ltr Aud. You guys better shut up and just pay, if they find out how much other suckers are paying around the world your in for some eye poppin increases
 

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Our fuel bill for October was over 100K. It would take a pile of storage to get us through a season.

So just where is this fuel for .60 like said a few posts back?
 
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