Fuel duty changes launching today could have huge impact on thousands of farmers

Certain motorists will be facing new costs from today after the Government announced a raft of changes to fuel duty rules.

Last month, Prime Minister Sir Keir Starmer and Chancellor Rachel Reeves announced a number of measures to protect motorists from huge fuel price hikes seen since the start of the Iran war.

This included extending the 5p per litre fuel duty cut until the end of the year, which was previously going to be phased out starting in September this year.

Some of the fuel changes have been extended until December 31, 2026, while other measures will be introduced from today (June 15, 2026) until the end of the year.

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This includes a further reduction to the rebated rate for gas oil (red diesel), biodiesel and bioblend by 3.7p per litre.

New rules will impact:

• Marked gas oil - 6.48p
• Kerosene to be used as fuel for an excepted machine (other than for heating) - 6.48p
• Biodiesel for use in an excepted machine - 6.48p
• Gas oil bio blend for use in an excepted machine - 6.48p

Red diesel is a standard form of fuel that has been dyed red to indicate that it is taxed at a lower rate, although its use is restricted to certain vehicles only.

HM Revenue and Customs outlines that red diesel can be used by agricultural vehicles, special vehicles, mowing vehicles and unlicensed vehicles.

While a range of vehicles are included, they must be used for qualifying purposes, with drivers required to check that their vehicle is entitled to use the fuel.

Documents from HMRC state that the legislative default will see rates return to their previous trajectory from January 1, 2027.

However, the Government will confirm final rates at the upcoming Autumn Budget 2026, which is expected to take place in October or November later this year.

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Fuel duty rates from January 1, 2027

Light oils

Unleaded petrol - 55.95p

Light oil (other than unleaded petrol or aviation gasoline) - 65.67p

Aviation gasoline (Avgas) - 37.43p

Light oil delivered to an approved person for use as furnace fuel - 10.33p

Heavy oils

Heavy oil (diesel) - 55.95p

Marked gas oil - 10.76p

Fuel oil - 10.33p

Heavy oil other than fuel oil, gas oil or kerosene used as fuel - 10.33p

Kerosene to be used as fuel for an excepted machine (other than for heating) - 10.76p

Biofuels

Bioethanol - 55.95p

Biodiesel - 55.95p

Biodiesel for use in an excepted machine - 1-0.76p

Gas oil bio blend for use in an excepted machine - 10.76p

Road fuel gases

Road fuel natural gas, including biogas - 23.85p

Liquefied Petroleum Gas (LPG) - 30.52p

Other fuel

Aqua-methanol - 7.63p

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