Red Diesel: Prices and Supply Chains
The question
To ask the Secretary of State for Environment, Food and Rural Affairs, whether she will make an assessment with Cabinet colleagues of the potential merits of the opportunities to increase the transparency of red diesel (a) supply chains and (b) pricing.
Answered by Dame Angela Eagle
Food security is a priority for Government, and it is taking the impacts from developments from the Middle East conflict seriously. Defra is working collaboratively with colleagues across Government to understand and respond to issues arising from the conflict.
Defra is conscious of the particular challenge posed by the price increase to red diesel due to international market volatility. This product is often bought via the spot market and so is more exposed to price volatility than road diesel at forecourts
To support farmers, Government has already brought forward a 5p fuel duty cut from March until September. Red diesel also continues to benefit from an 80% tax discount, saving almost £300 million a year.
The Competition and Markets Authority has been asked to look into industry concerns about red diesel prices, including price transparency. Defra is determined to help keep costs down for our farmers and producers.
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