Fianna Fáil TD for Cork North-West Aindrias Moynihan has called on the government to introduce targeted measures on green diesel costs for farmers, warning that rising fuel prices place the entire food supply chain under pressure.
Moynihan made the call after Tánaiste and Minister for Finance Simon Harris addressed the Dáil and confirmed that the government is finalising what he described as an intervention for areas facing the most acute pressure. Harris indicated that the government will agree on its response at the next cabinet meeting, planned for the following week, and that any intervention will run for a short period.
The Tánaiste ruled out targeting the Carbon Tax as part of the response, stating that the tax is not the cause of the current spike in energy prices. He also told the Dáil that where evidence exists of unfair pricing or behaviour that breaches consumer law, the government will investigate and act, adding that it stands ready to strengthen laws in that area.
Moynihan, who chairs the Joint Oireachtas Committee on Agriculture and Food, said the government’s planned intervention must extend specifically to green diesel, which farmers rely on to power machinery and run their operations. He said oil prices have surged by over five percent in recent weeks and that green diesel prices are rising more than three times faster than white diesel.
He said the cost of fuel has reached a point where it threatens the viability of farms across Ireland.
“Farmers are being squeezed from every angle, and fuel costs are now one of the most immediate and unavoidable pressures,” he said.
Moynihan pointed to current green diesel prices of between €1.40 and €1.50 per litre. He said a routine 1,000-litre fill now costs farmers up to €1,500, an upfront expense that many absorb with little or no margin to offset it.
“At current rates, a routine 1,000-litre fill is costing farmers up to €1,500. For many, that is an upfront cost they are being forced to absorb with little or no margin to cushion it,” he said.
He warned that the consequences of inaction will not remain on the farm. He said rising diesel costs feed directly into food production and pass through the supply chain to reach consumers at the checkout.
“When diesel prices rise to this extent, that cost does not stay on the farm. It feeds directly into food production and ultimately lands on the shelves in higher prices for consumers. If this continues unchecked, we will see the consequences right across the food chain, from producers to processors and, ultimately, at the till,” he said.
Moynihan said green diesel costs represent a farming issue today but will become part of the wider cost of living challenge if the government does not act. He called for targeted, time-bound intervention to stabilise costs and protect both farmers and consumers from further pressure.
“There is a clear case for targeted, time-bound intervention to stabilise costs and protect both farmers and consumers. The longer this is left unaddressed, the greater the knock-on impact will be,” he stated.
He added that targeted supports must be considered as a matter of urgency to ensure farmers can continue to operate and to prevent further inflationary pressure from moving through the food chain.
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