Red Diesel: Excise Duties
The question
To ask the Secretary of State for Transport, what estimate she has made of the level of benefit to rail freight operators arising from the reduction in red diesel duty.
Answered by Keir Mather
The Government is committed to supporting rail freight, recognising its economic and environmental benefits and the role it plays in the resilience of the UK’s supply chain.
On 20 May 2026, the Government announced that red diesel users, including rail freight, will see their fuel duty cut by over a third until the end of this year. Changes to taxation levels are the responsibility of the Chancellor so the Department has not carried out any detailed analysis of the benefits to rail freight operators. However, this is the lowest rate in over 20 years, helping to keep costs down and protect businesses at a difficult time, when red diesel prices are around 50% more than their pre-crisis levels.
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