Navigating Tight Diesel Markets

The current landscape of diesel and fuel markets is presenting unique challenges, especially for our nation’s farmers. The tightness in supply and demand for diesel fuel has become a key concern, with several major refineries remaining offline due to the impacts of COVID-19. Additionally, some refineries have converted to renewable diesel, reducing the overall availability of traditional diesel fuel.

“CHS owns two refineries, and were working as hard as we can to maximize every gallon of diesel that we’re getting out of those two assets to help with this issue,” says Erin Wroge, Senior Product Manager for CHS Refined Fuels.

She adds that farmers are advised to engage in strategic conversations with their diesel fuel suppliers to optimize fuel purchasing and ensure they have an adequate supply when needed.

Investing in higher quality, premium diesel fuel is highlighted as a key strategy for farmers to optimize their purchasing. 

“CHS recently upgraded its Cenex premium diesel fuel to meet current and future diesel engine technology trends, with a focus on reducing emissions and improving fuel efficiency,” explains Wroge. “The enhanced formulation includes an advanced detergency that breaks down engine deposits and a total water management system to protect against water contamination.”

Looking ahead, the agriculture sector is expected to witness a shift towards better fuels, including an increased use of biofuels such as biodiesel.