The rapid drop in diesel prices continued this week, with quotes for marked gas oil (MGO), more commonly known as green diesel, between 97c/l and €1.10/l (VAT inclusive) available, depending on supplier and the size of order.
That is a 30c/l to 40c/l drop on where prices were at the start of November. On global markets crude oil in recent weeks fell to the lowest level of the year and the euro rose to its strongest against the dollar since June. As oil products are paid for in dollars, the strong euro means cheaper oil.
Also, there are plentiful global supplies of diesel right now as China exports record amounts of the fuel due to a slowing domestic economy.
Looking ahead, there may not be much further for the fuel to fall. Oil has risen by $5 a barrel in the last few days.
China’s export surge could quickly reverse. In the medium term, Government excise cuts to fuel are due to roll off on 28 February next year.