Minister for the Economy for Northern Ireland, Dr. Caoimhe Archibald has highlighted to the British government the pressure rising global fuel prices are placing on NI households and businesses.

According to the minister, consumers using heating oil saw prices rise over 80% in less than a week.

In a letter to Minister for Energy, Michael Shanks, Minister Archibald highlighted the impact on local people, particularly on “lower income families, vulnerable consumers, and businesses, already burdened by the rising cost of living”.

Minister Archibald said: “Unprecedented price spikes, following the Israeli/US attack on Iran, are being felt by local homes and businesses across the north.

“With so many people already struggling with the cost of living, the speed and scale of these increases risk causing real hardship and need to be met with support from the British government like that made available following the Ukraine invasion.”

During Russia’s invasion of Ukraine in 2022, the British government introduced a series of financial support schemes in order to shield consumers and businesses from the extreme price volatility.

“”These measures made a real difference during the last energy crisis.

“Given the scale of the current price shock, it is essential that similar options are examined urgently,” Minister Archibald said.

DUP

The Democratic Unionist Party (DUP) Agriculture spokesperson, MP Carla Lockhart, has warned that farmers across Northern Ireland are facing intense financial pressure.

According to the Upper Bann MP, this comes as the cost of fuel and artificial fertiliser continue to increase as a result of the ongoing war in the Middle East.

She explained: “Confirmation that fertiliser prices rose by over 20% last week is ringing alarm bells for many in our agricultural community.”

She also noted that it has been reported to her that suppliers are “reluctant to quote” as prices are rising almost daily.

Lockhart added: “In another blow to our agri-food sector, expected in January 2027, the Labour Government is set to implement a Carbon Border Adjustment Mechanism (CBAM) – effectively a carbon tax on imported, emission intensive products, such as fertiliser.”

According to the Upper Bann MP, it is estimated that the CBAM will add in excess of £50/t to the cost of fertiliser.

“Fertiliser is not an optional input for farm businesses, it is essential for maintaining grass growth, crop yields and ultimately food production,” she continued.

“A sudden and significant spike in prices places yet another financial burden on farmers who have already endured years of volatility in input costs.”

Lockhart highlighted that the Middle East supplies 45% of global requirements for urea and ammonia, which are key components of artificial fertiliser widely used on farms.

With the improving weather recently, the MP added that field work has been picking up in Northern Ireland, with tractors with slurry tankers and fertiliser sowers “more visible in fields around the countryside”.

“The situation in the Middle East comes at a bad time and will undoubtedly lead to supply issues and higher overhead costs for farmers,” she said.

“The knock-on impact on fuel markets is also deeply concerning for consumers and farmers. We’ve seen soaring prices for petrol, diesel and home heating oil.”

Fuel costs

According to the MP, the cost of agricultural red diesel has risen rapidly to around 105p/L, an increase of over 40% in a week as a result of the conflict.

Lockhart said that this will significantly increase the cost of operating farm machinery.

“With a price rise of 30p/L, it will cost an extra £60 to fuel a tractor using 200/L of red diesel per day.

“That equates to £360 over a six-day week for a single tractor, and for a business operating five tractors, that’s an additional cost of £1,800 to the weekly fuel bill.”

Lockhart added that while Northern Ireland’s farmers are resilient, “they cannot continue to withstand the waves of cost increases”.

She called on government to “recognise the seriousness of the situation and work with industry to monitor the impact of rising fertiliser and fuel costs”.

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