Fustration at red diesel duty hike

NFU Cymru President, Peredur Hughes, has expressed his frustration at the news of an increase of over 23% on red diesel duty within the Chancellor's Pre Budget Statement.

The Chancellor announced a freeze on road transport fuel duty, which was welcomed by NFU Cymru, but the Government's failure to extend that freeze to include rebated fuel has made the NFU Cymru President's blood boil. An increase of 1.22 pence-per-litre on red diesel duty has been described by Mr Hughes as a kick in the teeth for farmers.

Mr Hughes said, "This new hike on red diesel duty could not have come at a worse time for farmers. High world oil prices, increasing input costs and shrinking returns have already seen margins squeezed considerably. This will have a significant impact on many farm businesses and should have been avoided. Surely if high oil prices are justification enough for a freeze on regular transport fuel duty then the same is true of red diesel which plays such a vital role in the day to day operation of our industry!"

A cautious welcome has been extended however by NFU Cymru to the Government's commitment to enhanced capital allowances for the most environmentally friendly biofuels.

Peredur Hughes said, "This is a pleasing commitment but we will be taking a closer look at the detail of the proposal before offering our full support. Encouraging investment and support to a thriving domestic biofuels industry is vitally important following the announcement of the five percent Renewable Transport Fuel Obligation last month. We do not want a situation where our obligation is met through the use of unsustainable foreign imports."