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Discussion Starter #1
Oil just dropped under 28 bucks a barrel. Fuel better be coming down.
 

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That’s what I’ve been thinking. But coop will come up with a reason to keep it up. But the way it’s looking there will more tax in the price of diesel than anything else
 

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That’s what I’ve been thinking. But coop will come up with a reason to keep it up. But the way it’s looking there will more tax in the price of diesel than anything else
I’ve been holding off for about 4 months now...lol...going to have to buy fairly soon
 

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I'm curious what fuel/gas were last time crude was back in this range, or the last two times might be of more interest. Seems that the prices we pay at the pump have detached from the other markets. This is more of a Canadian thing, US prices often get way lower. I know fuel is a smaller input in the grand scheme of things, but it really ticks me off how we are consistently gouged.

Couple weeks ago I was offered 80 cents, thinking we should get down to a spring fill price of 55 cents at least. We hit that level a few years ago. If a guy had a hedge account locking in a bunch on the ULSD NY Harbor futures might be something to consider, obviously there is currency exchange in there but it moves with the crude markets more than our retail pricing...
158555
 

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Been holding off buying diesel all winter too. Not that I use much but a buck saved is still better than one wasted. I haven't seen a great correlation in oil vs fuel prices in Canada. In fact there is often a tendency for fuel to hold while oil drops. And then fuel goes higher as oil comes up. It's funny that way. Am watching to see how other energy prices play out as the price for fertilizer tends to be better linked. See nat gas popped up this morning so not much to say other than that is a little odd. Guess it will be in more demand because other energy sources are all lower priced. Kind of a Socialist way of how markets work.
 

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It's similar to the price of food doesn't seem to drop when the price for our commodities drop. For that duration, they can expand their margins.
 

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Maybe OPEC can’t control crude any more but there’s nothing saying the gangsters refining can’t shape the end price with shutdowns and you name it.
 

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Discussion Starter #10
It’s the taxes in this country
 

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The price of gas and diesel topic on another forum got to look up my current state taxes yesterday. Gas was 61.2 cents a gallon plus 2.25% sales tax to the state. Diesel is 86.93 cents/g plus 9.25% sales tax. I don't think this number includes federal taxes which years ago was 18 cents/g that use to be posted on the pump. Yes as government always add tax to tax,like paying sales tax on the "road tax" they just took from you.

Oh the price I pay to live and farm in The Land of Fruits and Nuts (California). But then I have never shoveled snow.
 

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Discussion Starter #15
I’m told gas in Alberta suppose to fall .7 cents this week
 

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If price trend down two months.
If price trend up two seconds.
There's a reason for that. When the price of crude drops, all of the product in the system that was made from the higher priced crude has to be purged before the product made from the cheaper crude come to market. When the price of crude goes UP, then they have to increase the price right a away because that is what it will cost to replace their inventory. I didn't say it was a GOOD reason, just that were is a reason.
 

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Fuel will never drop in relation to the price drop per barrel. They don't need to, so why would they? Just like when one grain company takes over another and say they will pass the savings on to the farmer! ? Gas is still $1.08 here. Don't expect it will really get much below a buck. Fertilizer should start to drop like a rock.:ROFLMAO:
 

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There's a reason for that. When the price of crude drops, all of the product in the system that was made from the higher priced crude has to be purged before the product made from the cheaper crude come to market. When the price of crude goes UP, then they have to increase the price right a away because that is what it will cost to replace their inventory. I didn't say it was a GOOD reason, just that were is a reason.
The first parts right, but the second part is wrong IMO. When price goes up, all the cheaply purchased product in the system, by rights and using the same logic, should be purged from the system at the lower price. Once the more expensive crude enters the system, then they should increase price. :)
 

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The first parts right, but the second part is wrong IMO. When price goes up, all the cheaply purchased product in the system, by rights and using the same logic, should be purged from the system at the lower price. Once the more expensive crude enters the system, then they should increase price. :)
Absolutely right. That is why I said "there is a reason, I didn't say a GOOD reason". What I posted is EXACTLY what we were told by corporate about fertilizer prices when the price of natural gas would change. The one thing that I've always wondered is why diesel price lag so far behind gas prices??. When there is a drop in "fuel" price, gas always drops right away and diesel takes a few months to follow suit. When there is an increase in "fuel" prices gas goes up right away and diesel takes a few months to follow suit. Never understood why.
 

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Discussion Starter #20
Guys don’t expect NG to drop. If anything it will increase. With oil being shut in there will be solution gas shut in as well.
 
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