Tractor diesel prices are running 1c-2c/l higher than a month ago.

This increase came at the close of 2019 and before the latest political tensions between Iran and the US. Instead, it was mostly related to supply and demand issues. One fuel supplier notified its customer list of a 0.4c/l price increase due to the increase in the inclusion rate of biofuels in diesel on 1 January. Under statutory instrument 38/2019, signed last February, Minister for Climate Action Richard Bruton increased the inclusion obligation to 11% by volume.

So far, the latest developments between the US and Iran in the Middle East have not led to a significant increase in crude oil prices.

However, importers are watching to see if there will be attacks on oil installations or crude oil boats. That could lead to spikes in prices, which would feed through to diesel and petrol prices here.

This week, farmers are generally being quoted in the range of 73c/l to 76c/l including 13.5% VAT for deliveries of green diesel, depending on location, order size and payment terms.

Big buying groups could be getting further volume discounts of up to 2c/l.