Middles East conflict: farmers considering fuel protest over red diesel costs

Donald Trump began his blockade of the Strait of Hormuz yesterday afternoon, in retaliation to Iran’s toll booth plan, as the fragile ceasefire between the two countries appeared to fall apart.

The closure of the key shipping route for oil out of the Gulf has a bigger impact on diesel than petrol, with prices spiralling towards almost £2 a litre.

Meanwhile, the National Farmers’ Union (NFU) has said some members have reported a 60 per cent increase in red diesel prices, with shortages also being reported because of high demand.

The campaign group Farmers For Action (FFA)has warned of protests - including road blocks - unless Rachel Reeves cuts tax on the fuel used for tractors.

William Taylor, FFA co-ordinator, told the Daily Telegraph that the organisation had been asked to consider “UK-wide tax and fuel protests”.

“There is huge concern that current policies are failing to address the pressures facing key sectors of the UK economy,” he said.

Red diesel faces around 10p of tax per litre, and this is set to increase by more than a penny at the end of the year.

“There is no common sense to this tax rise, absolutely none,” Mr Taylor said.

Howard Cox, the founder of the FairFuel campaign, added: “I am in discussions with farmers and others to hold fuel protests in London and other places as drivers and businesses are sick to death of being used as Labour's cash cows.

“I have always been against direct action but I am being bombarded with requests to jointly lead protests in the next few weeks.”

It comes as the head of Energy UK has said it is inevitable that the next price cap update will see bills rise.

Dhara Vyas, chief executive of the industry body, voiced support for the Government to offer targeted help for those hit hardest by price hikes in the short term, and said the long-term solution was investment in clean power.

The Resolution Foundation said in its latest analysis of the impact of the conflict on the UK that the average household could be £480 worse off.

This is because rising energy prices are likely to mean that households will see income fall by 0.6 per cent rather than the 0.9 per cent growth they were previously on track for.

Speaking at a panel discussion hosted by the think tank yesterday, Ms Vyas said: “I think it’s inevitable that bills will go up on July 1, because we are more than halfway through the observation window, but I don’t know yet by how much.”

She said anyone working in the energy industry wakes up every morning and checks the gas price because there is no knowing what has happened overnight.

The Energy UK boss added: “So it is wildly unpredictable. The things we know for sure I think are our energy security is more at risk now than it has ever been.

“And I mean that not to kind of create a sense of fear about supply. That’s not what I mean.

“What I mean is our security in terms of having control over it. So investing in clean power is the way forward.”