Recent days’ cost spike for green agri diesel has been “significantly sharper” than the respective rise witnessed for regular motor diesel the Association of Farm & Forestry Contractors in Ireland (FCI) has claimed.
FCI figures put the average pre-Iran disruption cost increase at 16c/l inc VAT for white diesel but 36c/l inc VAT for bulk-ordered agri diesel, which represent a more than doubling of the price jump.
These figures put white diesel averaging €1.72/l before the latest wave of conflict in Middle East and an average of €1.88/l now.
The equivalent prices for agri diesel quoted by the contractor group are €0.97/l and €1.33/l.
Green diesel prices quoted in an FCI survey are as high as €1.50/l this week.
“Farm contractors are facing growing pressure as the cost of diesel continues to climb, with agricultural green diesel experiencing some of the most significant increases,” FCI said.
“Industry representatives are now calling for greater transparency in fuel pricing amid concerns that rural sectors are bearing the brunt of rising energy costs.
“While the absolute price of white diesel remains higher due to road taxes and duties, the rate of increase for green diesel has been significantly sharper, raising concerns among contractors and farmers.”
FCI said that the scale and speed of recent increases have “prompted concerns about possible price gouging within the fuel supply chain”.
It added that farm contractors often rely on bulk deliveries from a limited number of suppliers, leaving them less of an ability to shop around or negotiate prices with providers.
Price probe
Wednesday of this week saw Minister for Enterprise Peter Burke approach the Competition and Consumer Protection Commission (CCPC) seeking an investigation into suspicions of price gouging on fuel raised by the public.
A “constructive meeting” with fuel suppliers’ representatives on Friday got a commitment from these suppliers “to co-operate fully” with the CCPC’s assessment of consumer complaints.
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