The Irish Farmers’ Association (IFA) has called for any fall in wholesale diesel price to be immediately passed onto the end user.
The chair of the association’s Farm Business Committee, Bill O’Keeffe made the comments as first cut silage season kicks off around the country.
“We are entering into one of the busiest times of the year in terms of machinery work both for farmers and agri contractors.
“Given how tight cashflow is on farms at the moment, it’s critical that any reductions in wholesale diesel prices are immediately passed onto the end users,” he said.
O’Keefe noted that the price of a barrel of Brent crude oil has fallen by almost 10% over the past month, while markets are relatively stable currently.
“Farmers and contractors need all the help they can get at the moment. Given that diesel is such a large part of input costs, any reductions will have a positive impact,” he said.
Contractors
The Association of Farm and Forestry Contractors in Ireland (FCI) previously said that agricultural contractors will be facing fuel bills in the region of €30,000/week once silage season gets underway.
Michael Moroney, research director with the FCI, told the National Fodder and Food Security Committee (NFFSC) that poor weather in recent months delayed work on farms.
He said that this is leading to “huge cash flow restrictions” for some contractors.
Moroney also said that oil companies were concerned contractors will not be able to afford large fuel bills when work picks up.
The FCI has called for a Strategic Banking Corporation of Ireland (SBCI) finance programme to allow cash flow from farmers to contractors.
Diesel
The AA Ireland’s latest monthly Fuel Price Survey showed a slight fluctuation in petrol and diesel prices over the last few weeks after a sharp increase in April.
On average petrol rose 2c per litre to €1.83 in May, diesel dropped 2c per litre to €1.76 while EV fuel costs remain unchanged since April.
Jennifer Kilduff, head of marketing with AA Ireland encouraged motorists to shop around to get the best fuel prices, if possible.
“Saving even a few cents on topping up your tank can help. We would also urge drivers to continue to educate themselves on how to drive smarter and more efficiently, there are significant savings to be made when a vehicle is properly maintained,” she said.