Some farmers are looking to store more fuel as low oil prices bring down the cost. (The Canadian Press)

By Michael Joel-Hansen

fuel storage

Farmers looking to expand storage capacity amid low gas prices

Apr 21, 2020 | 2:29 PM

Some blends of oil are now trading for negative rates on world markets.

While the tumbling prices are not good news for large swaths of Saskatchewan’s economy some sectors are seeing savings.

Farmers who are currently getting fueled up for seeding are among those who are seeing some benefits. Don Blocka, who farms southwest of Prince Albert, said the lower costs will be helpful to producers on the front end especially considering the large volumes that tend to be used.

“The cost of production will go down on our fuel side, it’s probably almost half of what it was last fall, I mean with our narrow margins cheap fuel is a good thing for us,” he said.

Blocka said when he bought fuel, he made sure to fill up all that he could. He added the lower fuel prices have also led to changes for those looking to buy storage tanks.

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“I’ve seen tanks at auction sales, people having bidding wars over it,” he said.

Brian Kindt, director of Ag for Lake Country Co-op said during this time of year farmers tend to be stocking up on fuel. He explained it has been different recently as producers are making sure to fill up all of their on site storage.

Lake Country has also seen an increase in the number of tanks they are selling and some of those looking for more capacity are going to have to wait.

“A lot of the sizes of our larger tanks and midsize tanks are sold out until at least June,” said Kindt.

Kindt said overall they have seen a surge in demand for tanks.

Manufacturers trying to meet demand

Ken Pierson, sales/product manager for the fuel tank division at Meridian Manufacturing said over the last three weeks they’ve noticed a big jump in demand for fuel tanks across Saskatchewan, Alberta and Manitoba. He added the biggest jump in demand they have seen is for their 75,000 litre tank.

Pierson said producers should consider looking to upgrade their storage during this time as besides the benefit of buying bigger supplies, there is a possibility COVID-19 could lead to problems for companies.

“One guy gets COVID-19, and you’ve got two or three drivers and they all get it, they’re off for two weeks, where do you get your fuel from,” he said.

Pierson said people looking to order a tank from them would probably be looking at an end of June or early July delivery date.

MichaelJoel.Hansen@jpbg.ca

On Twitter: @mjhskcdn