Farmers Squeezed as Diesel Prices Skyrocket Amid US-Iran Tensions
Oil price volatility has pushed up fuel costs for farmers in both the UK and US. A surge in diesel prices, driven by renewed fighting between the US and Iran, has left farmers struggling to decide how much fuel to buy and when.
Fuel buyer Alex Harrison at Fram Farmers, a not-for-profit co-operative representing over 1,400 farm businesses across the UK, described the price increase as 'astronomical', with red diesel prices rising by between 10p and 14p per litre since Monday. This represents a 10% increase in cost.
The average price of diesel for UK motorists has climbed to 183.5p per litre, up from 164.5p in mid-July. Farmers are trying to manage their cash flow as they prepare for winter, with many ordering fuel in smaller increments and more often to hedge their bets.
Co-operative members have seen a significant spike in diesel prices amid a wider increase in crude oil costs, with Brent crude trading at close to $97 per barrel on Thursday. The US has also seen its average diesel price reach $5.78 per gallon, up 54% since the war began.