Green diesel prices have crept up marginally over the past two weeks, but overall remain steady.

Prices of 0.89c/l to 0.96c/l (VAT inclusive) were being quoted for Marked Gas Oil (MGO), better known as green diesel, on Wednesday.

Although higher than farmers and contractors might like, prices are on average back 0.53c/l on this week 12 months ago, when prices across the country were in the region of 1.42c/l to 1.50c/l (VAT inclusive).

Prices have remained stable on the back of a downward trajectory of crude oil prices.

Variation

There is also a significant variation in the prices being quoted for green diesel throughout the country. Prices are varying by 7c/l, with prices increasing as you move from the east of the country to the west. Crude oil prices have dropped despite Saudi and Russian production cuts which came into effect at the start of the month.

The cuts which were said to approximately total 1% of the global supply were announced to prop up oil prices, but have had little effect.

Supply

In theory, reducing supply should keep prices high, but the move shows how producers have less control over the global market than they might think. On Wednesday evening, crude oil was trading between $75 and $76/ barrel.

International oil prices have recorded a fall for a record four consecutive quarters.

This fall continues, despite China fully reopening from COVID-19 restrictions and using more oil and an earlier cut in production by the Organisation of the Petroleum Exporting Countries (OPEC) by more than 3.5m barrels to support prices.