Agriculture: Fuels
The question
To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment he has made of the potential impact of fuel costs on the financial viability of farms during the spring planting and silage-making season.
Answered by Dame Angela Eagle
The Government is conscious of the increases to prices of red diesel/gasoil, influenced by the continued instability in the Middle East. The Competition and Markets Authority has been asked to look into industry concerns about red diesel prices, including price transparency. The Government are determined to help keep costs down for our farmers. Red diesel continues to benefit from an 80% tax discount - saving farmers almost £300 million a year.
Defra works with industry and across Government to monitor risks that may arise. This includes extensive, regular and ongoing engagement in preparedness for, and response to, issues with the potential to cause disruption to food supply chains. The UK Agriculture Market Monitoring Group monitors UK agricultural markets throughout the year, including price, supply, inputs, trade, and recent developments.
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