Chancellor of the Exchequer Rishi Sunak has introduced a small cut in fuel duty for red diesel.

The move comes off the back of the larger 5p cut in fuel duty for petrol and white diesel. Red diesel will see a ‘proportionate cut to fuel duty rates which are lower than the main rates for petrol and diesel, including red diesel.’

The NFU Mutual's Sean McCann, said: "The government has said ‘where practical’ a proportionate cut will also apply to duty on red diesel, which is expected to reduce it by just under a penny per litre. However, the price of red diesel is roughly double what it was this time last year.”

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Scottish Land and Estates’ Stephen Young said: “There is still huge pressure on the cost of living and working in rural Scotland. We are particularly concerned about the cost of rebated fuel for agriculture.

"While taxation on this fuel is lower, the price seems to have disproportionately risen in comparison to DERV, and we are concerned as agricultural businesses are seeing companies unable or unwilling to offer prices before delivery. This lack of transparency takes competition out of the market.”