Photoagriculture / Shutterstock.com

Politics Energy

Comeback red diesel requires patience from farmer

16 May 2024 - Eric de Lijster - 3 comments

With the comeback of red diesel, farmers, gardeners and contractors receive a discount of 28 cents per liter of diesel. This is what Caroline van der Plas, leader of the BoerBurgerBeweging (BBB), said this morning when explaining her party's coalition agreement with the PVV, VVD and NSC. Agriculture and horticulture will still have to be patient: the reintroduction of red diesel is not planned until 2027. 

With the red diesel, BBB has secured an important point in the agreement. "We are very proud that we have been able to arrange this," Van der Plas said at the press conference, where she discussed red diesel in detail. "In 2013, the red diesel was abolished as a cost-cutting operation. But hardworking farmers on the land simply need the diesel. In recent years, many motions have been submitted to change this, but I was always told by the cabinet: this is not possible Well, it's possible." 

Bigger difference between red and white
Red diesel, also called gas oil in the sector, is fuel that is subject to a lower excise duty rate. In the past, red dye and an identification agent were added to the diesel to recognize the fuel. The measure to save costs for farmers, gardeners and contractors is not cheap. In the budget, the intended coalition has included an amount of €2027 million from 132 and €141 million for the following years to finance the red diesel. €5 million in implementation costs are also arranged annually. 

What is striking is the refund or discount of 28 cents per liter that Van der Plas announced compared to the usual white diesel. In 2012, the last year of the red diesel, the difference between red and white was about 12 cents. The average price of red diesel in December 2012 was slightly above €1,12 per liter. The recommended retail price for white diesel at the pump is now €1,89 per litre. Farmers pay significantly less with providers such as Farmers4All and LTO. 

The question now is which sectors exactly fall under the definition of farmers, gardeners and contractors. For example, Cumela Netherlands, the trade organization for entrepreneurs in green, construction and infrastructure, is studying the coalition agreement. The question is whether entrepreneurs in construction and, for example, earthmoving can also use red diesel again. A spokesperson for Cumela indicates that the trade organization will release a response to the coalition agreement on Friday. 

But for agricultural entrepreneurs it will in any case take another 2,5 years before red gas oil can be refueled again. 

Do you have a tip, suggestion or comment regarding this article? Let us know

Eric the Thrush

Eric is a member of the editorial staff of Boerenbusiness. As a descendant of an arable family, farmer's blood flows through Eric's veins. He considers himself a generalist, but with a preference for economics, trends, markets and marketing.
Comments
3 comments
Subscriber
frog 16 May 2024
This is in response to it Boerenbusiness article:
[url = https: // www.boerenbusiness.nl/artikelen/10909006/comeback-rode-diesel-requires-geduld-van-boer]Comeback red diesel requires patience from farmer[/url]
Let's keep our fingers crossed that this mixed bag will even make it to 2027.
Subscriber
Krelis 16 May 2024
Every coalition is a mixed bag, but I think there is little chance that this will reach the finish line in 2027.
Subscriber
Southwest 16 May 2024
Well, a fantastic gain of 30 cents per liter, that will certainly save the day!
You can no longer respond.

What are the current quotations?

View and compare prices and rates yourself

Analysis Energy

The Netherlands increasingly dependent on US for energy

Analysis Energy

Iran-Israel air war could push oil prices higher

Analysis Energy

Gas price rises due to Norwegian disruption

Analysis Energy

Trade war reverberates across energy markets

Call our customer service +0320 - 269 528

or mail to supportboerenbusiness. Nl

do you want to follow us?

Receive our free Newsletter

Current market information in your inbox every day

Login/Register