Diesel drops to lowest since Russian invasion of Ukraine
(ABC 6 News) – The price of diesel is down to its lowest level since the invasion of Ukraine. Last summer it reached its peak at nearly $5.50 per gallon, according to AAA.
Last summer, we heard from farmers struggling to make ends meet with higher business costs. Now, they say fueling farm equipment and transporting goods is more manageable.
Near Rochester, Kwik Trip, and Casey’s Gas have diesel for 3.99 per gallon. Sinclair has it cheaper at 3.79 per gallon.
Hemp farmer Ted Galaty says cheaper diesel is a boon for farming and transportation. He also recently got a new truck for his business and ended up buying one that uses gasoline to avoid high diesel costs.
“Diesel motors run longer. That’s one of their advantages of them. Plus, you get more power out of them and they’re great for hauling. But my concern was partially the diesel prices weren’t coming down…It made me not want to buy a diesel truck,” Galaty, the owner of Willow’s Keep Farm and Hemp Maze Minnesota, said.
According to Gas Buddy, the dip is partially due to the fed raising interest rates, and also the warmer weather and lower demand for heating oil.
Prices will keep declining, barring an escalation in global events like the war in Ukraine.
Gas Buddy expert Patrick DeHaan says that even though transportation costs are lower, the drop in diesel likely won’t impact what consumers pay in the grocery store.