Orion Farming Group Fuel Update 22/10/25
- Orion Farming Group
- Oct 22
- 3 min read
Average Orion prices have remained static overall this week.
Deliveries: Between 2 – 7 working days, dependant on the Supplier and the area they cover , some suppliers starting to get busier with the colder weather & their winter domestic trade starting up.
The graph detailing average prices is temporarily unavailable however we are looking to re-design this so it will appear again soon!
As we are entering in to the Autumn/Winter period it may be a good time to check on any Kerosene requirements.
For electricity enquiries please contact Stuart in the office or email – stuart@ofg.org.uk for any other enquiries please visit our CONTACT page
Your Farm Fuel Q&A: 22 October 2025
A factual update on the key questions impacting your fuel costs.
Q1: What’s the latest on crude oil and how does it affect farm fuel?
The benchmark Brent Crude Oil price has drifted lower into recent weeks, with quotes showing a price around USD 62-66 per barrel.
The fall is being driven by forecasts of a growing oil supply surplus and weaker demand outlook globally.
For farm fuel costs (red diesel, kerosene), the crude base price is important, but downward movement in crude doesn’t automatically translate into cheaper delivered fuel — refining margins, transport/logistics, and seasonal demand still dominate those costs.
Q2: What’s happening with red diesel and kerosene from a UK farm-fuel standpoint?
Red diesel (gasoil): With crude easing, you might expect some relief, but refinery throughput in Europe is constrained, and distribution/logistics costs remain elevated. That means gasoil pricing isn’t dropping significantly.
Kerosene/heating oil: As we head into the colder months, heating demand is rising and any supply hiccups (refinery work, shipping delays) are more likely to keep kerosene prices steady or rising rather than falling.
In short: While crude is under pressure, the downside for farm fuel costs is limited for now; don’t count on large savings unless the surplus becomes large and supply chains ease.
Q3: What key indicators should farmers keep an eye on now?
Refinery maintenance / outages in Europe & UK – Any disruption reduces supply of gasoil/kerosene and can push local delivered costs up.
Shipping/freight and logistics costs – Elevated freight or import delays into UK terminals can add to the delivered cost of farm fuels.
Seasonal demand for heating – A colder than expected autumn/winter will support kerosene costs.
Global supply / demand balance – The International Energy Agency (IEA) has raised its view that oil supply will outpace demand into 2026.
Exchange rate (GBP/USD) and UK fuel tax/levies – Because most fuels are imported and priced in dollars, a weaker pound increases UK cost exposure.
Q4: What’s the outlook for short-term farm fuel costs?
Given the current data: crude has some downward pressure, but farm-fuel cost relief is likely moderate at best in the upcoming weeks.
Because refining/distribution margins are sticky and seasonal demand is increasing, red diesel and kerosene prices may remain at current levels or edge higher, rather than fall significantly.
If major supply disruption is avoided and demand remains soft, a gradual easing is possible — but not enough to rely on big drops in your cost base this autumn.
