'Price of red diesel is putting us in the red'
Summary
Farmers in the UK are struggling with a big rise in the price of red diesel, a type of cheap fuel used for farming. This increase is causing them to reconsider planting crops and could lead to higher food prices and shortages in the future.Key Facts
- Red diesel price increased from 78p per litre before the Middle East war to £1.22 recently, peaking at £1.38 in early March.
- The conflict in the Middle East started on 28 February and caused fuel prices to rise.
- Prices have dropped slightly after a ceasefire announcement on 8 April but remain 56% higher than before the war.
- Farmers use red diesel for off-road vehicles, making it important for planting and harvesting crops.
- Fertiliser costs have also gone up, for example, a tonne bag rose from £336 to £390 since last year.
- Farmers report that the price they get for wheat is not rising enough to cover their increasing costs.
- Some farmers are cutting expenses like farm insurance to manage costs, which is risky.
- The government extended a 5p fuel duty cut until September and keeps an 80% tax discount on red diesel.
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