Inside Oil

Diesel price drops, but is it still available?

25 July 2018 - Anne Jan Doorn

The diesel price is falling again, after it had previously risen through the €1 limit. The falling price has everything to do with falling oil prices. However, it is also questionable whether there is enough diesel at all.

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De OUR recently reported that diesel is not available everywhere, because transport on the rivers has decreased (low water levels) and because there is currently a shortage of drivers. However, farmers' diesel suppliers state that there is still sufficient stock available.

Purchasing organization Farmers4all has noticed that the supply is less due to the drought. As a result, several ships that provide depots in the country from Rotterdam are not allowed to be fully loaded.

Falling diesel price
The price of diesel has now fallen to just under €1 per litre. In June more than €1,02 per liter of diesel was still paid. The basic price for diesel is currently €0.991 per liter, for delivery of 4.000 liters (via Farmers4all). This means the price drops below €1 per liter again.

The falling diesel price has everything to do with the sharp drop in oil prices. The price of oil was still around $80 per barrel at the beginning of July, but is now trading around $73 per barrel.

Additional offer
The falling oil price is a result of Saudi Arabia supplying more oil to Asia. Saudi Arabia is the unofficial leader of the OPEC oil cartel, which has long inhibited oil production. However, now it will provide more supply and that will push the price down.

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