5 Reasons why you should be buying diesel in bulk right now.
The word unprecedented has been used all too frequently in 2020, however, there may be a silver lining for farmers amidst the chaos. Thanks to the world-wide COVID stay at home orders, suspension of activities and industrial shutdowns, the oil supply chain has gone into a surplus and so the existing production schedules have quickly filled the holding tanks of all the producers.
- The lowest Oil Prices in over 18 years
Normally Russia and OPEC manage the supply of oil, and this keeps the prices relatively steady. However, the break up of the OPEC Oil production agreement due to COVID-19 with the previously mentioned over-supply has led to the lowest oil prices in over a decade. In April, the price of US crude oil crashed from $18 a barrel to -$38 in a matter of hours, as rapidly rising stockpiles of crude oil threatened to overwhelm storage facilities and as such forced oil producers to pay buyers to take the barrels they couldn’t store.
The market crash underlined the impact of the coronavirus outbreak on oil demand as the global economy slumps. Low oil prices mean low Diesel prices, in fact, the lowest in over 18 years, and this presents a huge opportunity to farmers. The prices of wholesale Diesel supply has dropped by 30% since January, with experts saying this drop will not last forever.
- Storage tanks are more financially viable than ever
You can take significant advantage of this price drop by storing diesel on your property in specialist tanks like the ‘Essential’ by Polymaster Tanks. With 10,000 litres of storage, a double-walled and self-bunded tank with integrated 70L/MIN Italian pump you’ll be able to safely store and regulate diesel from your very own discounted supply. Tanks like the Essential by Polymaster, pay for themselves in less than 6 fills, so it makes real financial sense to take advantage of the market.
- Large storage capacity means better buying power
By storing diesel at such quantities, you’ll also become a significant customer to the wholesaler meaning your buying and negotiating power becomes much far greater. With normal discounts for bulk Diesel at around 25%, you can gain significant financial advantage on already discounted fuel prices.
- Reduce the cost of transport
The total price you pay for diesel will often depend on how far, your supplier needs to travel to deliver you the fuel. If you’re a long way from the refinery you can often pay upwards of 20-30 cents per litre more than you need to. Bulk buying reduces the frequency of deliveries and therefore the ‘delivery charges’ which forms part of the diesel price. This along with your new storing capacity will allow you to continue to save thousands every year on diesel costs.
- Future Proof Your Farm
The experts are saying this will not last forever. So now is the perfect time to invest in high-quality fuel storage facilities so that your year on year diesel costs are significantly reduced regardless of the fluctuating price of Oil. Regardless of the oil price, having diesel storage tanks will always allow you to buy at a discounted wholesale rate, and act on price slumps. It also allows you to better plan your expenditure for the season ahead as your fuel costs become more stable and predictable from season to season.
If you’d like to find out more about diesel storage on your property, or have a yarn about anything to do with your farm give us a call at Ag Superstore on 1300 326 453 or if you’d like to take advantage of the diesel prices now, check out our Polymaster Diesel Storage Tanks here