Prices for tractor diesel have increased a little since dropping to record lows at the end of April. At that time, some agri-contractors and farmers purchased at prices as low as 33c/l to 35c/l plus 13.5% VAT. These low prices were for sizeable orders, typically 5,000l and higher. Some contractors bought additional storage tanks to take advantage of the market.

Those decisions now seem to be paying off. Carbon tax on green diesel increased by 1.55c/l on 1 May. Since then, quotes from most suppliers have risen by a further 2c/l to 3c/l. Quotes are now in the range of 38c/l to 41c/l plus VAT.

The higher quotes are happening because international oil prices are recovering. The major indices have gone over $30 per barrel this week, with Brent reaching $35.

International prices are rising due to a combination of supply cuts which were agreed by Saudi Arabia and Russia, plus the first easing of COVID-19 restrictions in many countries. However, diesel prices are still little more than half of the levels they were at through much of 2018 and 2019.