Supplies of green diesel are tight in some parts of the country due to the continuing volatility in energy markets.

Prices are also continuing to surge, with green diesel being quoted as high as 120c/l (VAT exclusive), while road diesel and petrol have topped €2/l (VAT inclusive).

Oil and gas prices spiked again this Tuesday in the wake of suggestions that the US government is poised to impose sanctions on Russian oil and gas exports.

Brent crude reached a high of $139/barrel on Monday, but fell back to $125/barrel in early trading on Tuesday. However, prices moved close to $130/barrel on Tuesday afternoon in anticipation of an announcement on Russia from the Biden administration.

Gas prices

European wholesale gas prices are also on fire. Prices reached €285 per megawatt hour (/MWh) before easing to €235 on Tuesday.

But a sharp surge in prices saw European benchmark gas prices reach €345/MWh on Monday. A year ago, these contracts traded at about €16/MWh.

Oil is now at its highest level since 2008, but analysts have warned that blocking oil exports from Russia, the world’s second-largest supplier at 5m barrels a day, could result in prices topping $200/barrel.

The volatility in international markets has been reflected in Irish fuel prices, with some retailers already moving over the €2/l mark for petrol and diesel.

Green diesel supplies

There are also reports of green diesel supplies being tight. Large cereal growers who have secured supplies over the last few days have had to pay a VAT-exclusive price of 114c to 120c/l. This is 80% to 90% higher than this time last year.

Commenting on the hike in green diesel prices, one Munster tillage farmer estimated that the cost of operating a combine would increase from €8/ac last year to €14 to €15/ac this harvest.

This latest hike in gas prices represents a continuing challenge to the embattled fertiliser industry and ultimately for farmers.

Fertiliser importers are already struggling to secure adequate supplies due to the impact of the Ukrainian conflict and a 250% lift in commodity prices compared with spring 2021. The latest hike in gas prices will further fuel fertiliser costs.