Diesel boost for farmers as prices drop 22-24c/l

FARMERS are taking full advantage of the continuing collapse in global oil prices which has resulted in the cost of agricultural diesel falling to 48-51c/l including VAT.

Diesel prices have continued to plummet on the back of the oil war that erupted this month between Russia and Saudi Arabia.

Green diesel prices fell another 2c/l last Friday and are now freely available for 51c/l including VAT. However, large buyer groups paid as low as 48c/l including VAT for diesel last week.

The cost to the farmer is back 22-24c/l since the start of the year, when the general price for diesel was 74-75c/l.

The price drop equates to a saving of at least €220 on a 1,000-litre delivery, or €330 on a delivery of 1,500 litres.

Oil prices have tumbled over the last fortnight following the failure of Russia and OPEC to agree production quotas.

Crude oil prices fell to a low of $31 per barrel this week as both sides in the dispute increased output and flooded the market. This represents a more than 50pc reduction from the $65 per barrel paid in January.

However, getting deliveries of fuel is proving difficult, with local oil companies reporting a surge in orders due to a combination of the low prices and the Covid-19 crisis.

Enda Everard of Shreelawn Oil, part of the East Cork Oil Group, said delivery trucks are booked out three days in advance at the moment because of a spike in demand for home heating oil.

“Everybody is looking for home heating oil now that the children are home from school for the next few weeks. There’s been a bit of panic buying,” Mr Everard explained.

Farmers have also been making the most of the low prices. One tillage farmer in the east said he filled every tank in the yard, even the combine.