From 15th June 2026 through to 31st December 2026, the rate of fuel duty on red diesel will be reduced by 3.70 pence per litre. This temporary reduction lowers the duty payable from the current rate of 10.18 pence per litre to 6.48 pence per litre.
The reduced rate will apply to all eligible purchases of red diesel made during this period. As a result, businesses and sectors that are permitted to use red diesel, such as agriculture, horticulture, forestry, rail transport, and certain other qualifying activities, will benefit from lower fuel costs for the remainder of 2026.
The reduction is intended to provide financial relief by lowering operating expenses for eligible users during the second half of the year. Unless further changes are announced, the reduced duty rate of 6.48 pence per litre will remain in effect until 31st December 2026.