Diesel prices Ireland hits €2.14 a litre amid global crisis

Irish drivers face another blow

Data from the AA shows costs have climbed by almost a quarter since February, leaving motorists and businesses facing mounting bills.

The surge is being fuelled by a combination of strained global supplies and soaring profits from diesel refining. 

Disruptions affecting refineries in Russia and the Middle East have reduced available supplies, while falling exports from China have added further pressure to the market.

Refining margins, which measure the profit made from turning crude oil into usable fuel, have risen dramatically. 

University College Cork lecturer Dr Paul Deane told RTÉ News that earnings increased from roughly $32 per barrel in February to $107 in September.

Farmers and hauliers face mounting costs as diesel crisis deepens

The pressure is being felt internationally, with US diesel prices reportedly up 70% since the US-Iran war broke out. 

Donald Trump has urged European countries to release emergency fuel reserves in response.

Trump has also reached an agreement with Russia for Moscow to supply 300,000 tonnes of diesel to American and other buyers. 

Further deliveries are expected in November and December, but Dr Deane warned the amount would cover less than one day of diesel demand from the US transport industry.

G7 countries have separately committed to releasing 100 million barrels of diesel onto the market.

For Ireland, the timing presents a challenge for the Government as it considers whether to retain fuel excise cuts in Budget 2027. 

With prices already near record levels, motorists, farmers and hauliers may have little immediate relief.