The Ulster Farmers’ Union has described the UK Government’s decision to extend the 5p fuel duty cut and introduce a temporary reduction in red diesel duty as a significant and positive step for farmers and rural communities following sustained engagement and lobbying from the UFU.
The 5p fuel duty cut, first introduced in 2022 and originally due to begin phasing out from September, has now been extended by Chancellor of the Exchequer, Rachel Reeves, until the end of the year. Alongside this, the duty rate on red diesel, an essential fuel used by farmers in tractors, harvesters and other off-road machinery, will be reduced from 10.18p per litre to 6.48p per litre from 15 June until the end of 2026.
Commenting on the announcement, UFU president, John McLenaghan, said, “The UFU welcomes this announcement, particularly the temporary reduction in red diesel duty. Red diesel is not a discretionary cost for farmers; it is an essential input used every day to produce food, manage land, keep farm businesses operating, and ultimately deliver high quality, affordable food for consumers.
“Farmers and rural communities have faced severe fuel and input cost pressures with very limited direct assistance. This measure is a welcome first step and recognises the immediate pressure that rising fuel costs are placing on agricultural businesses.
“However, this cannot be the end of Government action. Fuel pressures and wider input costs are already influencing production decisions on farms across Northern Ireland, and further targeted support is needed to prevent serious consequences for domestic food production.”
In addition to the fuel duty cut, the UFU’s four other key asks set out, which they will continue to press Government for action on were as follows:
- A further temporary reduction in fuel duty to reduce diesel costs, including retention of the existing fuel duty cut beyond September 2026 and a pause to the planned phased reintroduction. [ACHIEVED]
- The establishment of a UK-wide market monitoring and transparency framework for fuel and fertiliser pricing. [GOVERNMENT PROGRESSING]
- A one-off, time-limited fertiliser support scheme for the 2026 season, delivered through direct payments or vouchers. [ONGOING]
- The extension or reintroduction of targeted energy cost relief schemes for agricultural businesses, particularly in energy-intensive sectors. [To be discussed with the NI Executive Office next week]
- The designation of agriculture and food production as priority sectors in any fuel supply disruption or emergency allocation framework. [To be discussed with the NI Executive Office next week]
Mr McLenaghan added, “For the largest industry in Northern Ireland to have gone without support until now is unacceptable. Other European countries have already acted to back their agricultural sectors, and we need to see the same degree of assistance here.
“Farmers are doing everything they can to keep food on tables while managing unprecedented cost pressures. If the Government is serious about protecting food security and sustaining rural communities, it must continue to deliver enhanced targeted support as a matter of urgency.”
