I see there are changes among familiar oil companies who have been supplying agri diesel to farmers and contractors in the Leinster area for years.

Klass Oil Distributors is now operating the business of the well-known Flynn Fuels, which built up a big operation from its headquarters at the Flynn family farm at The Downs, Mullingar.

Klass Oil acquired Harmon Oil, which operates across Westmeath and Meath, delivering agri diesel as well as home heating oil.

Tight margins in the oil business are driving this rush to co-operate or scale up

I hear that Klass Oil has also approached Tommy Dowd Oil Distributors Ltd to see if the two could do business. Twice All-Ireland winning Dowd established a successful business, with many farmer clients, operating out of Athboy and Kells.

Tight margins in the oil business are driving this rush to co-operate or scale up.

One supplier told The Dealer that he gets a gross margin of just 3c/l to 4c/l on agri diesel between his wholesale buying price and his price out to farmers. From this he must pay for the driver, the lorry and other running costs.