We have been following the diesel market in detail for a couple of months now, using data from the Energy Information Administration, Official Energy Statistics from the U.S. Government’s website. The EIA takes weekly retail on-highway diesel prices, including all taxes, from various locations around the United States from the East coast to the West Coast. We use this data to draw our own conclusions on the issue, showing changes from various points in time. They also have downloadable statistics for the past 53 weeks. This data is available to the public at:
http://tonto.eia.doe.gov/oog/info/wohdp/diesel.asp
As of 8/18/2008, EIA reports a U.S. National average diesel price of $4.207 per gallon at the pump. This is a 46.69% increase from $2.868 per gallon a year ago. Diesel was at its highest on 7/14/2008 with a U.S. National average of $4.764 per gallon. Since then it has decreased 12% to $4.207 per gallon as of 8/18/2008. The trend for the past few weeks is showing that the price is dropping nearly $0.10 per gallon every week.
While there is a slight relief at the pump for the time being, fertilizer costs continue to rise. According to our survey data, the average price for NH 3 has increased from $952.5 per ton a month ago to $1074 on 8/13/2008, an increase of 16.77%. Prices for UAN and Urea have increased nearly the same rate. UAN increased from $440 to $465.5 or 8%, and Urea has increased from $735.75 to $853 or 21.34% in the same time period.
MAP and DAP have increased 10.10% and 3.38% from 7/16/2008 to 8/13/2008 respectively. MAP has increased from $1105.25 to $1185 per ton while DAP has increased from $1180 to $1184 per ton. Potash has increased from $736 to $802 per ton in the same time period. This is an increase 19.12% in just three months.
Input costs as of 8/18/2008 :
Diesel Fuel (On-Highway, Taxes included): $4.207 per gallon
Anhydrous Ammonia: $1074 per ton or $0.655 N per lb
UAN: $465.5 per ton or $0.831 per lb of N
Urea: $853 per ton or $0.927 per lb of N
MAP: $1185 per ton or $1.139 per lb of P 2 0 5
DAP: $1184 per ton or $1.287 per lb of P 2 0 5
Potash: $802 per ton or $0.668 per lb of K 2 0