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Diesel costs 'to rise higher'

PUBLISHED: 10:18 10 May 2008 | UPDATED: 08:24 28 March 2014

MAY 9, 2008: Diesel
costs are expected to climb even further, according to research by
a leading accountant.

Grant Thornton says red diesel is now costing farmers and growers up to 59p/litre, compared with 36p/litre just one year ago.

London's Brent Crude oil market has continued to climb to just under $120/barrel after breaching the £100/barrel mark in early March.

Grant Thornton's Gary Markham said new figures from the AtlasFram Group - the merger between Atlas Agriculture and Framlingham Farmers - were forecasting prices of 75p/litre for the 2009 harvest.

"From 2007-2008, we've seen a 66% increase in fuel costs and this now looks likely to rise a further 29% in 2008-2009," said Mr Markham.

While contractors would have to convince their customers to accept higher fees to account for higher fuel costs, it was essential that arable farmers began to budget now for peak fuel useage during harvest and autumn cultivations, he said.

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