Thursday, May 13, 2010

Farm Economy News

Gas Prices Still Up

BOISE - Idaho Farmers are dealing with gasoline prices that are more than 20 cents higher than the national average. Analysts blame the cost difference on low production levels at Salt Lake City refineries, almost all of southern Idaho's oil supply comes through Salt Lake.

Gas futures dropped more than 22 cents earlier this month, down to $2.40 a gallon. The Futures are an indicator of wholesale prices one month out. Some insiders think that after memorial day we could see a significant drop, and that's good news for farmers that are coping with rising input costs.

The AAA isn't so optimistic, they point out that transportation and taxes to ship the fuel to Southern Idaho will run about 40 cents per gallon, according to Dave Carlson, AAA spokesman, he thinks its too soon to assume prices will drop to $2.80 by the end of the month."It's presumptuous to say they're going down."

As of Thursday, the average price for a gallon of regular-grade gasoline in was $3.11. But the price drop is starting to filter down to motorists, but should take several weeks to show up at the pump, which is $2.90 nationwide.

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