Over the past 10 days, green diesel prices have jumped from 98c/l up to as high as €1.50/litre including VAT, as a result of the conflict in the Middle East.
Based on an order of 1,000 litres, this equates to an increase of up to €520 including VAT.
At the time of print this week, prices for bulk orders of green diesel or marked gas oil (MGO) were ranging from €1.39/l to €1.50/l including VAT.
With delivery times of up to one week in some scenarios, almost all suppliers have resorted to quoting on delivery only given the volatility within the market.
Global markets
As global markets opened on Monday, fears of a lengthy disruption to oil supplies resulted in Brent, the global crude oil benchmark hitting US$119/barrel, surpassing the US$100/barrel mark for the first time since Russia’s invasion of Ukraine in 2022 and clocking its biggest single day gain in six years.
Within hours, the market eased somewhat following President Trump hinting at an early end to US military action, while separately, talks between G7 counties said the group “stands ready” to release oil from strategic reserves if necessary.
With oil tanker traffic heavily restricted in the Strait of Hormus, several key producers, including Saudi Arabia, the United Arab Emirates, Kuwait and Iraq, have started curbing production as storage facilities fill quickly.
As we went to press, Brent was trading between US$88-US$89/barrel, up almost US$10/barrel in the space of one week.
Contractor concerns
Closer to home, the Association of Farm & Forestry Contractors in Ireland (FCI) voiced its concern about the fact that green diesel price rises have been “significantly sharper” than the respective rise witnessed for white diesel.
A statement released by the association on Friday 6 March, put the average pre-Iran disruption cost increase at 9.3% for white diesel and 37.1% for bulk-ordered agri diesel, which represents a more than doubling of the price jump.
The FCI outlined: “Over the past number of years, green diesel prices have climbed from roughly €0.70-€0.80/l including VAT to around €1.01/l including VAT, representing an increase of approximately 25-40%, depending on supplier and region. By comparison, white diesel has risen from roughly €1.65-€1.68/l in recent years to around €1.73/l, representing a much smaller increase of around 3-5% in the same period.
“This disproportionate increase is particularly concerning for agriculture and forestry sectors, where diesel is an essential input for everyday operations including harvesting, planting, and many other farm contractor activities. For many farms and contracting businesses, fuel costs represent a major portion of annual operating expenses.
“The scale and speed of recent increases have also prompted concerns about possible price gouging within the fuel supply chain. Farm contractors often rely on bulk deliveries from a limited number of suppliers, leaving them with little ability to shop around or negotiate prices. FCI argue that this lack of competition in certain rural areas may allow prices to rise more quickly than justified by wholesale market changes.
Hauliers call off protest
Earlier this week, the Irish Road Haulage Association called off the protest which it had planned for Tuesday 10 March, after what they said was a last minute intervention from the Government. The Association said the Transport Minister Darragh O’Brien contacted its president, Ger Hyland, from Brazil, and his department has set up an in-person meeting upon the minister’s return.
Association president Ger Hyland says the association is willing to hear the Government out and meet without pre-conditions, with a view to resolving what is fast becoming one of the biggest crises to face the haulage industry in 20 years.
Over the past 10 days, green diesel prices have jumped from 98c/l up to as high as €1.50/litre including VAT, as a result of the conflict in the Middle East.
Based on an order of 1,000 litres, this equates to an increase of up to €520 including VAT.
At the time of print this week, prices for bulk orders of green diesel or marked gas oil (MGO) were ranging from €1.39/l to €1.50/l including VAT.
With delivery times of up to one week in some scenarios, almost all suppliers have resorted to quoting on delivery only given the volatility within the market.
Global markets
As global markets opened on Monday, fears of a lengthy disruption to oil supplies resulted in Brent, the global crude oil benchmark hitting US$119/barrel, surpassing the US$100/barrel mark for the first time since Russia’s invasion of Ukraine in 2022 and clocking its biggest single day gain in six years.
Within hours, the market eased somewhat following President Trump hinting at an early end to US military action, while separately, talks between G7 counties said the group “stands ready” to release oil from strategic reserves if necessary.
With oil tanker traffic heavily restricted in the Strait of Hormus, several key producers, including Saudi Arabia, the United Arab Emirates, Kuwait and Iraq, have started curbing production as storage facilities fill quickly.
As we went to press, Brent was trading between US$88-US$89/barrel, up almost US$10/barrel in the space of one week.
Contractor concerns
Closer to home, the Association of Farm & Forestry Contractors in Ireland (FCI) voiced its concern about the fact that green diesel price rises have been “significantly sharper” than the respective rise witnessed for white diesel.
A statement released by the association on Friday 6 March, put the average pre-Iran disruption cost increase at 9.3% for white diesel and 37.1% for bulk-ordered agri diesel, which represents a more than doubling of the price jump.
The FCI outlined: “Over the past number of years, green diesel prices have climbed from roughly €0.70-€0.80/l including VAT to around €1.01/l including VAT, representing an increase of approximately 25-40%, depending on supplier and region. By comparison, white diesel has risen from roughly €1.65-€1.68/l in recent years to around €1.73/l, representing a much smaller increase of around 3-5% in the same period.
“This disproportionate increase is particularly concerning for agriculture and forestry sectors, where diesel is an essential input for everyday operations including harvesting, planting, and many other farm contractor activities. For many farms and contracting businesses, fuel costs represent a major portion of annual operating expenses.
“The scale and speed of recent increases have also prompted concerns about possible price gouging within the fuel supply chain. Farm contractors often rely on bulk deliveries from a limited number of suppliers, leaving them with little ability to shop around or negotiate prices. FCI argue that this lack of competition in certain rural areas may allow prices to rise more quickly than justified by wholesale market changes.
Hauliers call off protest
Earlier this week, the Irish Road Haulage Association called off the protest which it had planned for Tuesday 10 March, after what they said was a last minute intervention from the Government. The Association said the Transport Minister Darragh O’Brien contacted its president, Ger Hyland, from Brazil, and his department has set up an in-person meeting upon the minister’s return.
Association president Ger Hyland says the association is willing to hear the Government out and meet without pre-conditions, with a view to resolving what is fast becoming one of the biggest crises to face the haulage industry in 20 years.
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