The NFU has voiced its concerns over what the plans to increase the fuel duty on diesel and petrol by 2p a litre from April 1 would do to the farming industry, and urged chancellor Alistair Darling to scrap the proposal.
In a letter to Darling, NFU president Peter Kendall expressed “considerable concern” at the effect the proposal would have on the industry, which is highly dependent on the haulage industry for the delivery of goods and the distribution of produce.
“With fuel accounting for 35 per cent of haulage input costs, inflation in the haulage industry already runs at more than six per cent and this cost has to be recouped through higher charges to the user,” explained Kendall. “However, as primary producers, farmers are inevitably price takers, not makers, so they cannot recoup their increased costs through selling at higher prices.”
Kendall said the NFU was dismayed that recent fuel duty increases had hit red diesel disproportionately hard. “Frankly, I am puzzled by the justification for these increases - on the grounds of combating fraud and protecting the environment - and have to say I find them entirely unconvincing. Over the last five years, farmers have faced a red diesel price increase of more than 180 per cent, driven not only by increased oil prices, but by the duty element, which has increased disproportionately compared with other fuel.”
No comments yet