UKIFDA Urges Chancellor To Halt Fuel Duty Increase On Red Diesel

4th March 2020

Liquid fuels trade association, UK and Ireland Fuel Distributors Association (UKIFDA) is urging Chancellor Rishi Sunak to reconsider the rumoured increase to fuel duty on red diesel in the forthcoming budget, as it will have a major impact on the construction and farming industries.

Red Diesel is used by the construction, farming and marine industries and accounts for 15% of all diesel sales in the UK. Any increase in fuel duty will have a major impact on UKIFDA Members and their customers and could see the cost of red diesel significantly increase, potentially increasing costs to farmers and construction companies.

The cost of construction projects could potentially increase by hundreds of millions – particularly large-scale construction projects where one project may be using up to 100,000 litres of red diesel a week. As a result, this could impact the viability of such projects.

The farming industry will also be affected at a time when many are struggling with flooded land and are already worried about 2020 crops. Again, any increase will have to be passed onto consumers.

We urge the Chancellor to reconsider and leave the fuel rebate – put in place to encourage and support the farming community in the 1960s – in place.

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