Green Diesel prices peak as contractors ‘terrified to phone fuel suppliers’

The Association of Farm and Forestry Contractors in Ireland have written to the Government this week seeking targeted fuel support as Marked Gas Oil (MGO) prices have peaked for 2026.

The average price referenced by FCI has risen from approximately €0.88 per litre in 2025 to around €1.49 per litre today, an increase of approximately €0.61 per litre, or almost 70%.

FCI National Chairperson Norman Egar said:

“Some of our members admit to being terrified to phone their fuel suppliers for a quote; they simply are at breaking point now and they can’t see an end in sight”.

This is not simply a short-term increase. The higher fuel price continues to feed through every contracting operation. A contractor using 100,000 litres of fuel is facing an additional cost of approximately €69,000 compared with the €0.88 per litre level. This cost cannot simply be absorbed by the contractor without ultimately threatening the viability of the business.

“Contractors cannot continue to absorb rising costs indefinitely. Without viable contractors, farmers cannot access the machinery, labour and specialist services required to produce food efficiently and on time”, Mr Egar added.

The Government’s €29 million of Fuel Income Support Scheme was a welcome recognition of the pressures facing the sector. However, the exceptional cost pressures which led to the allocation of €85 million to farmers and contractors have not abated and, in the case of agricultural diesel, have intensified. Teagasc has also recognised that high diesel and machinery costs continue to place pressure on contractors and silage-making costs.

This week, FCI once again called on Government to use any unspent funding from the Fuel Income Support Scheme for targeted supports to farm and forestry contractors.

FCI Managing Director Ann Gleeson Hanrahan said:

“Retaining the remaining €56 million from the Fuel Income Support Scheme within the agricultural sectors it was originally intended for would provide much-needed certainty during a period of continued volatility in agri-diesel prices.”

“Agri-diesel prices are now higher than the peak weeks following the outbreak of the war”, she added.