This week, white diesel and petrol prices have increased thanks to the budget-related carbon tax increases.

Meanwhile, green diesel prices remain unscathed from carbon tax increases until 1 May 2025.

Budget 2025 has seen the rate of carbon tax increase by a further €7.50/t, from €56/t to €63.50/t. The carbon tax rise will add 2.1c to a litre of petrol, and 2.5c to a litre of diesel.

The carbon tax rise won’t stop here either, with the Government committed to increasing the carbon tax to €100/t by 2030.

As we went to press this week, fuel suppliers surveyed across the country were quoting prices of between 98c/l and €1.02/l, including VAT for bulk orders of green diesel or marked gas oil (MGO) as it’s officially known. The majority of suppliers contacted were quoting closer to 99c/l to €1/l (including VAT).

These prices have jumped quite a bit over the past two weeks. In fact, prices are up 9c/l in the last 10 to 14 days, with a similar trend being observed in the price of Brent crude oil, which diesel is refined from.

Brent crude

Brent crude has increased by $10 over the past week to between $78 and $79/barrel at the time of press this week. Looking back on previous months’ activity, prices had been steadily dropping before having bottomed out at $69.19/barrel on 10 September.

Prices are currently trading at their highest level in over a month, with fuel suppliers noting that this is being driven by escalating conflict and tensions in the Middle East.

Israel’s potential response to last week’s missile attack from Iran is being closely monitored by the oil industry, with Iran’s oil facilities considered a possible target which, if hit, would have a major effect on pricing. However, there continues to be a dampening fuel demand from China.

As a general rule, fuel price fluctuations tend to trail behind crude oil market prices.

For example, a drop in Brent crude today may not make its way down to depot or forecourt level for weeks. But remember, oil is traded in dollars, which means currency fluctuations have a huge impact on pricing.