The UK government has announced a new support package today (Wednesday, May 20) that will see farmers and other agri-diesel users get a fuel duty cut.
According to the UK Treasury farmers, rail freight, and other agri (red) diesel users will see their fuel duty cut by over a third until the end of the year.
The Treasury said this is the lowest rate in over 20 years and will help “to keep the cost of doing business down at a difficult time when red diesel prices are around 50% more than their pre-crisis levels”.
The UK government said the package is designed to help keep the cost of farming and transport down at a “difficult time when red diesel prices are around 50% more” compared to before the Middle East conflict.
The fuel package also includes a 12-month road tax holiday for the haulage industry; meaning hauliers will “pay £1 at renewal, saving £600 for a typical heavy lorry and £912 for the biggest vehicles on the road. “
In addition to this, Chancellor Rachel Reeves extended the 5p cut on fuel duty for British motorists at the pumps for the rest of the year.
The Treasury estimated that this reduction in fuel duty will save the average driver £120 by the end of the year, with fuel duty on petrol and diesel set to remain “at its lowest rate for over 16 years.”
UK government
The Treasury believes this new fuel package has delivered on the government’s commitment, which was made at the start of the Middle East conflict, to “not make kneejerk decisions that could impact on financial stability.”
The UK government has described the package as “timely and targeted.”
Prime Minister Keir Starmer said: “I know many are feeling the pressure of energy and fuel costs, and are worried about how the conflict in Iran will affect their finances.
“Because when global events drive up prices, it’s working people who feel it first.
“That’s why this government is stepping in to keep fuel costs down for millions of drivers and putting money back in the pockets of working people,” he added.
Chancellor Reeves also outlined what the UK government’s plan is with the latest fuel duty cuts.
She said: “I’m keeping taxes down for drivers and businesses – putting money in the pockets of millions of workers and cutting costs for farmers and hauliers.
“The war in Iran is pushing up fuel prices here at home but after strong growth at the beginning of the year, I am stepping in to protect people at the pump.
“By protecting households and businesses we are building a stronger and more secure economy for Britain; that is the right economic plan.”