Quotes for bulk quantities of green diesel this week have fallen below the €1/l mark for the first time in 2024, in line with a declining trend in crude oil prices.

As we went to press this week, prices being quoted for bulk orders (>1,000l) of green diesel, or marked gas oil (MGO) as it’s more formally known, were ranging from 96c/l to €1.05/l, including VAT, throughout the country. However, the majority of suppliers contacted were quoting closer to 99c/l (including VAT).

‘Price around’

Prices have been dropping since the last week of May, and by as much as 3-4c/l more recently over the June bank holiday weekend.

In the space of a month and a half, prices have dropped as much as 15c/l from highs of €1.11/l in mid-April to lows of 96c/l (including VAT) on Tuesday, this week.

Given the large variation in prices between the lower and upper end of the market, buyers are advised to price around before purchasing as there are cost savings to be had based on current quotes.

This time last year, green diesel was trading between 89c/l and 92c/l (including VAT).

While not as cheap as one might like, the recent price drop comes as welcome news for agricultural contractors and farmers as the annual peak consumption months get under way.

The drop in fuel price comes as a result of the declining trend in Brent crude prices, which have steadily been in decline since the last days of April. However, over the bank holiday weekend just gone, prices dropped more suddenly, by up to US $6/barrel to lows of US $76/ barrel, marking a new four-month low for crude prices.

At the time of going to press this week, Brent crude was trading between US $76/barrel and US $77/barrel.

Earlier in mid-April, crude hit a six-month high when it was trading at US $91/barrel, an indication of just how volatile markets can be.

As a general rule, fuel prices increases/decreases tend to trail behind crude oil market prices.

However, there is a lag between the two – a drop in Brent crude today may not make its way down to depot or forecourt level for weeks.

Rises on the way

Despite reintroduction of the fuel excise duty adding a further 1.7c/l to green diesel prices in April, more Government related price hikes are due in the coming months.

One of which is the final instalment to fully restore the excise duty on fuel, due on 1 August, when a further 1.7c/l is expected to be added to green diesel prices (4c/l on petrol and 3c/l on white diesel). A carbon tax increase is also said to be on the cards for October.