London, England – Urea prices reached record highs in June 2008, which affected the “already tight” margins on AdBlue urea additive for diesel engines, according to AdBlue, the company that makes the additive. AdBlue is a urea additive that must be added to some passenger car diesel engines to control emissions.

The rising prices are adding to additional pressure from the soaring price of automotive diesel and growing doubts over the health of the commercial vehicle market, the company said in a statement, and that AdBlue suppliers are “heading for tougher conditions” in the third quarter of 2008, especially as research shows that producers are now receiving much better returns on urea when it is sold as fertilizer.

 The company also said that while prices will need to increase, AdBlue prices should not be allowed to reach a point where auto manufacturers using urea would be at a competitive disadvantage with manufacturers who are using EGR technology to control diesel emissions.