Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the cost of Red Diesel on a) agriculture and horticulture, b) forestry, c) rail and d) marine; and what steps she is taking to help mitigate changes in prices.

This question was answered on 17th March 2026
Certain sectors, such as agriculture and horticulture, retained access to red diesel after it was withdrawn from most sectors in 2022. In contrast to full duty diesel, taxed at 52.95 pence per litre (ppl), red diesel currently incurs a duty of 10.18 ppl.

At Budget 2025, the Government extended the temporary 5p fuel duty cut alongside extending the proportionate percentage cut for rebated fuels, which includes red diesel. This maintains the red diesel rate at the levels set in March 2022 at 10.18 ppl until the end of August 2026, with rates then gradually returning to March 2022 levels by March 2027, an increase of less than 1 ppl. The planned inflation increase for 2026-27 has also been cancelled. As the Chancellor has set out, the Government will keep fuel duty under review.