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Farmers purchasing red diesel should shop around as prices obtained midweek had a range of 7p/l between the highest and lowest quotes.
Based on a delivery of 2,250 litres, prices at the lower end were hovering around 87p/l excluding VAT.
In contrast, the upper end of quotes for the same volume of diesel were around 94p/l excluding VAT, which would add £157 on to the purchase cost.
At the start of January, red diesel was generally around the 89p to 90p/l mark.
However, over the past fortnight crude oil has increased in value to around US$84 to $86/barrel, partly due to a weakening US dollar.
Looking ahead for 2023, market analysts expect higher demand from China than in 2022, which is likely to underpin global oil prices.
Derv
Quotes for derv also show value is to be had in shopping around, with prices ranging from 130p to 141p/l excluding VAT.
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