Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the impact of current fuel duty levels on the agricultural sector; and whether she is considering any temporary reductions or exemptions for red diesel used in farming.

Farmers retained the entitlement to use red diesel for agricultural machinery after it was withdrawn from most sectors in 2022. Red diesel used in agriculture is subject to fuel duty at just 10.18p per litre compared to 52.95p for diesel used on roads, representing savings of almost £300m p.a.

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 10.18p per litre until the end of August 2026, with rates then gradually returning to March 2022 levels by March 2027, an increase of less than 1p a litre. The planned inflation increase for 2026-27 has also been cancelled.

The Government keeps fuel duty under review.As the Chancellor has set out, a rapid de-escalation in the Middle East remains the best way to bring down fuel prices but the Government will also take the necessary decisions to help families with the cost of living and protect the public finances.