UK farmers heading into autumn cultivations and drilling face renewed uncertainty over red diesel, as volatile wholesale markets drive sharp price swings and make it hard to decide when to buy, Farmers Weekly reports. Its latest supplier survey puts the average at 118p a litre, up from about 98p at the end of July.

AHDB's monthly benchmark put the August average at 108.47p a litre, up 19.6 percent in a month and 43.3 percent on a year earlier. The rise follows disruption to global diesel markets from tensions in the Middle East and reduced Russian refinery output. US President Donald Trump has also threatened to restrict diesel exports, though the White House has denied reports of a 90-day ban; the UK sources around 30 percent of its diesel from the US.

Higher fuel costs feed straight into cultivations, drilling and livestock work, and contractors face pressure to raise charges or add fuel surcharges. Stuart Goodinson, general manager of the Oxfordshire-based Orion Farming Group, which buys fuel for 300 members, said red diesel rose 5 percent between 9 and 16 September and that, despite small local falls, the trend is upward. "The only certainty now is uncertainty," he said.

Helen Needham, a director of Worcestershire supplier Callow Oils, said prices had instead fallen 4 to 5p since the previous Friday, back to 111-112p a litre after a peak of 115p. "The market is just so volatile at the moment," she said. "There are shortages in some regions."

Wiltshire mixed farmer David Butler warned that high prices could encourage fuel theft. Forecourt diesel has reached a record 199.18p a litre, according to the RAC, and the International Energy Agency expects global diesel markets to stay under pressure for months unless refining in Russia or the Middle East recovers or demand weakens quickly.

Photo: Michael Trolove / Wikimedia Commons (CC BY-SA 2.0)

Source: Farmers Weekly