The government has said that it is extending the 5p fuel duty cut until the end of the year and that the rate for red diesel will be slashed from 10.18p to 6.48p per litre.
Extending the freeze on fuel duty has been a key ask of the NFU in response to rising costs from the war.
Some NFU members reported prices even higher during March and April.
The 5p per litre fuel duty cut has been in place since March 2022 and was due to rise later this year.
”We have consistently raised the inflationary pressures facing farmers and growers with the government including in recent meetings with Defra ministers.”
NFU President Tom Bradshaw
‘Good news’
Responding to the news, NFU President Tom Bradshaw said: “Since the outbreak of the war in the Middle East, we have consistently raised the inflationary pressures facing farmers and growers with the government including in recent meetings with Defra ministers.
“The government’s decision to scrap the planned rise in fuel duty is good news, and the cut to red diesel duty is a welcome, well-targeted measure.
“There are further steps the government could take going forward, such as reversing electricity standing charge increases and delaying CBAM, to help ease production cost pressures for farmers and growers and curb inflation across the food supply chain.”
Prime Minister Sir Keir Starmer said the government was “stepping in to keep fuel costs down for millions of drivers and putting money back in the pockets of working people”.
Road tax news for hauliers
Hauliers will also get a 12-month road tax holiday to help keep costs down – this will in turn help with getting raw materials onto farms and produce into supply chains with the poultry sector having been particularly affected by increased costs associated with specialist bird movements.
Keep track of our lobbying work on rising costs via our timeline.
