Agriculture: Red Diesel

(asked on 20th July 2022) - View Source

Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, pursuant to the Answer of 18 July 2022 to Question 35899 on Fuels: Prices, if he will make an assessment of the potential impact of the increase in the price of red diesel on (a) farming and (b) other agricultural businesses; and if he will make a statement.


Answered by
Victoria Prentis Portrait
Victoria Prentis
Attorney General
This question was answered on 5th September 2022

Defra engages extensively with the farming sector and other agricultural businesses and continues to do so through various forums including the Agri-Supply Coalition and the Arable Chain Advisory Group. Through these forums, we closely monitor live issues, including the increase in the price of red diesel, and their impact on farming and other agricultural businesses. Defra also works closely with other Government departments, particularly HM Treasury, the Department for Business, Energy and Industrial Strategy and the Department for Transport, to relay the information gathered from industry.

In the Spring Statement 2022 and in response to fuel prices reaching record levels, the Government announced a temporary 12-month cut to the full rate of duty on petrol and diesel of 5p per litre and an equivalent percentage cut on the rates for rebated fuels. This is a significant tax cut that will deliver considerable savings to consumers and businesses over the next year, including those that use diesel, and is the first time in over a decade that the main rates of petrol and diesel have been cut.

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