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As spring approaches, energy market dynamics are increasingly significant for farmers and agribusinesses in Pennsylvania and Northern Maryland. This update will dive into how diesel, gasoline, electricity, and natural gas markets are evolving and what these trends mean for your operation as we enter planting and growing season.
Recent data indicates that as of February 2025, the national average diesel price reached approximately $3.67 per gallon, while gasoline averaged around $3.12 per gallon. The good news is that in the Central Atlantic region, including Pennsylvania and Northern Maryland, these prices are mostly in line with national trends ($3.96 per gallon of diesel, and $3.14 per gallon of gasoline) with minor local variations due to supply conditions. Diesel prices are nearly 40 cents lower than a year ago, and gasoline prices are 65 cents off their high of April 2024.
Although supply chain issues from winter are starting to ease, any unforeseen disruptions in refinery operations or transportation can quickly affect pricing. As we head into warmer months — when the market sees an increase in demand thus propping up prices –– farmers relying on diesel for tractors, harvesters, and transport are advised to consider fuel hedging or bulk purchasing strategies to manage cost volatility. (U.S. Energy Information Administration, 2024, https://www.eia.gov/petroleum/gasdiesel/)
According to the U.S. Energy Information Administration, the average commercial electricity rate in Pennsylvania was about 11.3 cents per kilowatt-hour as of late 2024, which is below the national average of 12.22 cents per kilowatt-hour, while Maryland saw commercial rate averages of 13.1 cents.
While electricity customers in Met Ed, PPL, and BGE are seeing lower than state and national averages, capacity costs on the rise and volatility in marketplace are reasons to work with a energy supplier like Shipley Energy. We’ve seen a rise in electricity costs in the post COVID era, and with greater demand on electricity infrastructure, costs are poised to rise.
For agribusinesses, locking in long-term electricity contracts now can serve as a hedge against future price fluctuations. Additionally, many farms are exploring on-site renewable solutions—such as solar installations—to reduce overall dependence on grid power and lower long-term energy costs. Shipley Energy Advisors can help with solar site selection: validating returns, efficiencies, and navigating tax incentives. (U.S. Energy Information Administration, 2025, https://www.eia.gov/electricity/monthly/)
Natural gas remains a critical resource for agricultural operations, from heating livestock facilities to powering production processes. As of December 2024, the Henry Hub natural gas price averaged around $3.01 per MMBtu, which sharply increased to $4.13 per MMBtu in January. The EIA reported a withdrawal of 196 Bcf, leaving the current storage level 386 Bcf less than this time last year, and 118 Bcf below the 5-year average.
Colder than average temps are expected in the Northeast over the next few weeks, with warmer than average to normal temperatures expected March through May. Anyone with open winter positions may be subject to high spot pricing and may consider a short-term option to brace for additional cold weather and price spikes. Longer terms are beginning to look more favorable, with 2026 priced lower than the remainder of 2025. (U.S. Energy Information Administration, 2024, https://www.eia.gov/dnav/ng/hist/rngwhhdm.htm)
As farms transition into planting and early-season fieldwork, energy consumption patterns change rapidly. Increased use of machinery, irrigation systems, and greenhouse operations means that even modest fluctuations in fuel or energy prices can significantly impact operating budgets. Being proactive in monitoring these seasonal trends allows farmers to adjust spending effectively and plan for the upcoming growing season.
Global geopolitical events, weather anomalies, and regulatory shifts continue to shape the energy landscape. International crude oil supply dynamics and unexpected weather patterns can have a rapid impact on local fuel availability and pricing as seen with propane in January 2025, or diesel in October 2022 when the Russian-Ukraine war began. Recognizing these broader influences reinforces the importance of proactive energy procurement and strategic planning in agribusiness.
Shipley Energy invites you to join them at several upcoming events tailored for farming and agribusiness professionals:
We’d also like to highlight local expos and seminars—such as those listed on the PA Farm Bureau event calendar—offer valuable opportunities to network, gain insights into evolving market trends, and explore new energy contracting strategies. These gatherings provide an ideal platform to discuss tailored energy solutions and connect with industry peers.
The dynamic energy landscape presents both challenges and opportunities for Pennsylvania and Northern Maryland agribusinesses. Staying informed and proactive is essential for mitigating risks and capitalizing on potential savings.
Shipley Energy is committed to helping you navigate these changes with customized energy solutions designed to support your operational goals and provides discounted fuel and energy to members of the PA Farm Bureau, Lancaster Chamber, and other agribusiness organizations.
Contact us today to discuss strategies that align with your farm’s specific needs and to set the stage for a successful season.
Disclaimer: The market update is intended solely for informational purposes only. Shipley Energy Company does not warrant or attest to its accuracy. All actions and judgments taken in response to this report are the recipient’s sole responsibility. Shipley Energy Company shall not be liable for any direct, indirect, incidental, consequential, special, or exemplary damages or lost profit resulting from these market updates.
