Quotes for bulk quantities of green diesel have fallen to their lowest levels since mid-July, on the back of crude oil prices which have steadily dropped since the 20 October.
As we went to press this week, prices quoted for bulk orders of Marked Gas Oil (MGO), or green diesel as its more commonly known were ranging between €1.03/l to €1.07/l (VAT inclusive). This signals that prices are back from 8c/l to 14c/l since mid-October.
Although still above the €1/l mark, prices are also back on the same period (end of November) last year when quotes were ranging from €1.09 to €1.18/l (VAT inclusive).
White diesel and petrol
In terms of petrol and white diesel prices, the latest AA Ireland Fuel Price Survey shows that both have fallen by 3c/l month-on-month, recording a second monthly drop in prices.
Petrol is down from €1.83/l in October to €1.80/l. Diesel has also fallen by 3c per litre, from €1.84/l to €1.81/l in November. From the lows of €1.47/l for diesel in May, there was a strong worry that we would see the €2/l mark being hit this year. This has not materialised and now looks unlikely to happen.
International oil markets over the past month have receded too but remain stable overall. Brent Crude prices started of the month of November in the region of $84-$85/barrel before creeping back to the $80-$81/ barrel.
Similarly, when green diesel was trading as high as €1.18/l in October, Brent crude prices were at their yearly peak, reaching highs of $94/barrel.
Saudi Arabia has called on other OPEC+ members to reduce production quotas in order to hold prices.
A weakening global economy and China’s ongoing sluggish Covid-19 recovery are also said to be factors currently effecting international markets.
To prove just how relative diesel prices are to crude oil prices, the last time crude oil was trading in the region of $80/barrel was also four months ago, in mid-July, when green diesel was last trading around the €1/l mark.
Similarly, when green diesel was trading as high as €1.18/l in October, Brent crude prices were ?reaching highs of $94/barrel.
According to the AA, continuing unrest in the Middle East means markets remain uneasy and it’s far from certain to assume that prices will remain stable.
However, petrol and white diesel stocks being delivered to forecourts this week suggest that prices will be slightly lower again for the end of November and early December, with many around the country paying below €1.80/l for both petrol and white diesel.