UFOP reports agricultural diesel is the most expensive option

In Germany, UFOP reports that wholesale prices for agricultural diesel, biodiesel and rapeseed oil surged considerably over the past several months. However, none of these transport fuels shot up as sharply as agricultural diesel did.

October crude oil prices reached a four-year high, causing prices of agricultural diesel – the tax-privileged option for agricultural equipment – to rise to 87.50 euro cents per litre. In March 2018, agricultural diesel and biodiesel stood at the same level, whereas rapeseed oil fuel has been cheaper than agricultural diesel since the end of 2017. Price curves are similar, but price gaps have widened significantly in some cases. This means that it pays off to process rapeseed oil into biodiesel. What is more, the latter sells fast for blend uses, not least because it is needed to meet quality requirements for winter diesel. The unexpectedly brisk demand for fuel has also driven up prices for biodiesel, along with mineral oil prices. According to information published by Agrarmarkt Informations-Gesellschaft mbH (AMI), biodiesel prices are currently up 22 per cent from spring 2018. However, low water, smaller harvests in 2018 and reductions in sowings for 2019 are also factors that add to the price of rapeseed.