Farmers warned as rise in fuel duty is expected
16th October 2024
Farmers have been warned to avoid getting caught out by the much-anticipated rise in fuel duty, which is expected to be announced in the Budget on 30th October.
Okehampton-based Moorland Fuels believes that fuel duty, which has been frozen since 2011, could rise by as much as 10p per litre.
This will occur if the Chancellor announces an increase in fuel duty by 5p/litre and removes the temporary 5p/litre cut in fuel duty introduced under the Conservative Government in March 2022.
Removing the 5p discount alone will bring the Treasury an additional £2bn a year.
The rise is expected following extensive warnings from the Prime Minister that the government’s first Budget in October is going to be “painful”, with people having to accept “short-term pain for long-term good”.
In the run-up to the general election, Sir Kier Starmer refused to rule out a fuel duty increase.
Painful uplift in fuel duty expected
To combat what could be a very painful shock for businesses that buy their fuel in bulk, including, hauliers, agricultural contractors, farmers operating agricultural equipment, and companies that run fleets of vehicles, Moorland Fuels is advising businesses to take action now by ordering fuel deliveries ahead of 30th October.
Matthew Crockett, managing director of Moorland Fuels, explained: “Businesses that order early will be able to avoid what we expect to be a painful uplift in fuel duty, and the potential for last-minute panic buying, which could see many paying more for their fuel than they need to.
“The key is to ensure that deliveries arrive before midnight on 30th October, after which they will be subject to any fuel duty increase announced in the Budget. To do that with certainty, businesses will need to plan ahead and order early.”
Very expensive mistake
Mr Crockett added that due to the exceptionally busy period for farms right now, some of them may fail to order fuel in good time, which will be a “very expensive mistake”.
“At a 10p/litre increase in fuel duty, businesses could face extra costs of hundreds or even thousands of pounds. Some of our larger customers, who typically order 18,000 litres of fuel, would see a £1,800 increase on orders arriving after midnight on 30th October,” he concluded.
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