Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of increases in the price of red diesel on the viability of small-scale commercial fishing businesses; and whether she plans to take steps to reduce fuel costs for inshore fishing vessels operating from coastal towns such as Filey.

The Government recognises the importance of the fishing industry to coastal communities and the pressures from higher fuel costs.

All commercial fishing vessels are entitled to use red diesel, which attracts a reduced duty rate of 10.18 pence per litre, compared with 52.95 pence per litre for standard fuel—a difference of nearly 43p per litre. For those vessels that operate at sea, they can claim back 100% of fuel duty under marine voyages relief.

The Government has taken action to support fuel users in response to the conflict in the Middle East, including extending the 5p fuel duty cut until the end of this year. It has also announced a further reduction in red diesel duty—from 10.18p to 6.48p per litre—from 15 June until the end of 2026.

The Government continues to monitor fuel cost impacts and will take action where necessary to support businesses, including the fishing sector.