In recent weeks, diesel prices have dipped by as much as 20c/l to 30c/l, but not as much as some may expect if they’re basing their verdict on crude oil prices. One of the major driving forces behind this is the weakening of the euro against the dollar. Oil is traded in dollars, meaning currency fluctuations can have a huge impact on Irish pricing.

Earlier this week, the value of one euro fell below that of one US dollar for the first time in 20 years. With €1 capable of buying up to $1.19 just one year ago, this drop has represented a significant fall for the currency in a relatively short space of time.

Despite minor fluctuations here and there, fuel prices for the most part began to dip over the past four to five weeks.

As we went to press this week, prices of 1.29c/l to 1.38c/l (VAT inclusive) were being quoted for Marked Gas Oil (MGO), more commonly known as green diesel. This means green diesel is back by about 20c/l to 30c/l on average from the highs of 1.58c/l to 1.60c/l (VAT inclusive) five to six weeks ago. However, suppliers on Tuesday evening were forecasting an incoming increase of 1.5c/l to 3c/l very shortly.

Supplier comments

Fuel suppliers are saying that those purchasing higher quantities will buy green diesel several cents per litre cheaper, while cash payment versus credit will also have a similar impact on pricing.

Suppliers reference the continued unrest in Ukraine, political tensions and the declining value of the euro against the dollar, all of which are driving uncertainty in fuel pricing.

International oil markets continue to remain volatile. As we went to press this week, Brent crude oil was on the rise, trading at $106 to $107/barrel. In recent weeks, Brent crude prices fell to as low as $99/barrel. Coming close to the lows of $98/barrel in mid-March, pricing is still back considerably on the highs of $128/barrel earlier this month when Russian sanctions were first imposed.