Rising fuel costs are adding pressure to farms during a busy period of autumn drilling, cultivations and livestock work
Red diesel prices have risen by more than 50% in a year, according to new industry estimates, leaving farmers facing significantly higher machinery running costs during the busy autumn fieldwork period.
The Agriculture and Horticulture Development Board (AHDB) estimates that UK red diesel reached 112.95p per litre in September 2026, up from 75.21p during the same month last year.
The increase of 37.74p per litre means a farmer purchasing 1,000 litres would face an additional £377.40 compared with the equivalent purchase at last September's estimated price.
For a 5,000-litre delivery, the difference would amount to £1,887 before VAT, illustrating the potential impact on businesses heavily reliant on diesel-powered machinery.
The figures, updated on 7 October, also show that AHDB's red diesel indicator rose by 7.8% in a single month, climbing from 104.77p per litre in August.
The renewed increase comes as arable farmers continue autumn cultivations and drilling, while livestock producers face ongoing fuel requirements for feeding, bedding, slurry handling and other essential work.
Fuel remains one of the most widely used inputs in British agriculture.
According to Defra figures published in September, 98% of commercial farm businesses in England used red diesel during 2024/25.
Average annual consumption, including fuel used by agricultural contractors, stood at approximately 13,000 litres per farm.
However, requirements varied considerably between sectors, with dairy farms using an average of 26,200 litres and general cropping farms consuming around 19,300 litres.
Both sectors depend heavily on machinery for everyday operations, leaving them particularly exposed to fluctuations in diesel costs.
The latest increase reflects continued volatility across global energy markets.
AHDB's figures show the average OPEC crude oil price rose to $110.59 per barrel in September, compared with $70.61 a year earlier, representing a 56.6% increase.
UK road diesel prices also climbed sharply, reaching an average of 191.30p per litre in September, up 35.1% year-on-year.
The increases come despite temporary government measures intended to ease fuel costs for farmers and other eligible users.
From 15 June, the government reduced red diesel duty from 10.18p to 6.48p per litre, with the lower rate remaining in place until the end of December 2026.
The measure was introduced to help businesses facing higher energy and production costs, particularly during fuel-intensive agricultural operations.
However, the latest AHDB estimates show that wider market price increases have outweighed the temporary reduction in duty.
Fuel is also adding to an increasingly challenging financial picture for UK farms.
Earlier this week, analysis from the Andersons Centre estimated that agricultural input inflation had reached 7.8% in the year to September, while prices received for agricultural output were 1.3% lower.
That combination puts pressure on farm profitability, particularly where higher operating costs cannot be recovered through improved farmgate returns.
AHDB's red diesel figures are calculated using road diesel pump prices, adjusted for VAT and fuel duty, rather than being based on a direct survey of agricultural fuel deliveries.
Actual prices paid by farmers may therefore differ according to supplier, location, delivery size and purchasing arrangements.
The 50.2% increase reflects the change in AHDB's September price indicator, rather than a measured increase in every farm's annual fuel bill.
Nevertheless, the latest figures underline the continuing exposure of UK agriculture to energy price volatility at a time when many farm businesses are already facing considerable financial pressure.