A downward movement in red diesel prices has led to a wide variation in quotes from fuel suppliers in NI.

A price survey conducted by the Irish Farmers Journal on Wednesday found quotes for 2,000 litres of red diesel ranged from 93p/litre to 101p/litre plus VAT.

Most suppliers in our survey were around the 96p/litre mark.

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Some suppliers indicated that further price cuts could be applied before the end of the week, with the best quotes expected to get close to 90p/litre.

The long-awaited drop in red diesel prices is being driven by falling international oil markets amid hopes that a peace deal could soon be reached in the US-Iran war.

Brent crude oil, the international benchmark, fell by $5/barrel when trading commenced on Monday and was sitting at $97/barrel on Wednesday afternoon.

That said, the situation remains volatile, and any breakdown in peace talks could quickly see oil markets rebound again.

Critical levels

A major concern among market analysts is that any further delays in re-opening the Strait of Hormuz could see commercial oil stocks reach critically low levels next month.

Even if the blockade on the strait does end soon, it could take several months for oil markets to normalise back to levels seen before the war in February 2026.

However, a key factor that should help red diesel prices in the coming weeks is the UK government’s plan to cut duty on the fuel by 3.7p/litre.

Last week, it was announced that from 15 June until the end of 2026, duty on red diesel will drop from 10.18p/litre to a new rate of 6.48p/litre.

However, it remains to be seen how much of the cut will be retained by wholesalers and suppliers, and how much will be passed on to farmers through lower diesel prices.