Farm contractors today (Friday, March 6) warned that they are facing "growing pressures" because of a sharp spike in diesel prices as a result of the Middle East conflict.

The Association of Farm and Forestry Contractors in Ireland (FCI) said agricultural green diesel has seen some of the "most significant increases" in price in recent days.

According to the FCI, the "scale and speed of recent increases" has prompted concerns about what it described as possible price gouging within the fuel supply chain.

The contractors group today warned that it is concerned that "rural sectors are bearing the brunt of rising energy costs".

The FCI said its analysis suggests that white diesel - used in transport - was averaging around €1.72 per litre in Ireland before the Middle East conflict unfolded.

It also found that bulk green diesel - used in agriculture and forestry operations - was averaging around €0.97per litre including VAT.

Contractors

The FCI said today: "White diesel has now risen to €1.88 on average. This 16 cent increase represents a 9.3% increase in price.

The association believes that the "disproportionate increase" in green diesel is particularly concerning for agriculture and forestrysector.

It said diesel is "an essential input for everyday operations including harvesting, planting, and many other farm contractor activities".

"For many farms and contracting businesses, fuel costs represent a major portion of annual operating expenses," the FCI added.

It said that among its members the "scale and speed of recent increases" has prompted concerns about "possible price gouging within the fuel supply chain".

"The Association of Farm and Forestry Contractors in Ireland (FCI)argue that this lack of competition in certain rural areas may allow prices to rise more quickly than justified by wholesale market changes," it said.