Farmers and hauliers are set to benefit from a fresh round of fuel support measures, as the government confirms the 5p fuel duty cut will remain in place until the end of the year. Alongside the extension, hauliers will receive a 12-month road tax holiday, while red diesel users – a key concern for the farming sector – will see duty cut by more than a third from 15 June.
The reduction takes red diesel duty from 10.18p to 6.48p per litre, marking the lowest rate in more than two decades. The move comes as red diesel prices continue to sit around 50% higher than pre-crisis levels, offering farmers some much-needed relief at a time when input costs remain high.
The 5p per litre fuel duty cut was first introduced in March 2022, with the view that it may end later this year. Instead, businesses and rural industries now have the reassurance that fuel costs will not rise again just yet, a welcome bit of stability for sectors already juggling tight margins and ongoing cost pressures.