Red diesel falls below 70p/litre as crude oil markets dip
© Tim Scrivener Falling fuel markets will come as welcome news to many agricultural businesses and contractors ahead of a busy spring period on farm.
Market commentators have also indicated that further reductions could be in the pipeline for the coming months.
Red diesel prices collected by Farmers Weekly averaged 68.3p/litre on 19 March based on a 5,000 litre delivery, putting it at the lowest level so far this year.
See also: Fertiliser costs climb in early 2025 but may hold longer term
Prices varied between regions, with red diesel trading at close to 65p/litre in eastern regions and up to 74p/litre in the North West.
Lower fuel prices have been driven by falling global markets, with Brent crude oil values trading at $70.51 (£54) a barrel on 19 March, a drop of 14% since peaking in January.
RAC head of policy Simon Williams said: “Drivers have had to endure five months of rising prices, so it’s good news that wholesale prices have fallen significantly.”
“The old ‘rocket and feather’ saying about prices going up like a rocket and falling like a feather will hopefully be proved wrong this time around.”
Greater decline
Further falls for red diesel may lie ahead judging by oil markets, according to CRM Agri, but prices could remain at risk from shocks.
Advisers at the firm said: “Futures are pricing in a gentle decline in Brent crude prices into late 2026, implying oil prices are being weighed by expectations of output growth.”
The Organisation of the Petroleum Exporting Countries (Opec) has projected global oil demand growth in 2025 of 1.4m barrels/day (up by 1.44%), and further growth in 2026.
It also forecast global oil availability to increase at a similar rate, with increased supplies from the US, Brazil, Canada, and Norway.
Opec’s March oil market report said: “Crude oil futures trended lower in February and exhibited significant volatility, driven by speculative selling, concerns about US trade policies and geopolitical developments in the Middle East and Eastern Europe, which weighed on market sentiment.”