Farmers and rural communities facing ‘perfect storm’ as fuel costs spike

A Devon councillor has urged the Chancellor to provide more help as farmers and rural communities face a ‘perfect storm’ and ‘extremely difficult choices’ in the wake of spiralling fuel costs.

Cheryl Cottle-Hunkin, county councillor for Torrington Rural, has written to Chancellor Rachel Reeves to highlight the impact the Iran conflict has had on rural residents who rely on heating oil, whose cost has more than doubled in two weeks.

Cllr Cottle-Hunkin, a farmer herself, said on top of this, steep increases in LPG, red diesel and fertiliser mean the farming community is also taking a huge financial hit.

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Yesterday (Monday, March 16), Prime Minister Sir Keir Starmer announced and emergency £53million support package for lower income households reliant on heating oil, especially in rural areas.

It is not clear yet how people can access this help but it has been allocated for the ‘most vulnerable’ households.

In her letter to Rachel Reeves, Cllr Cottle-Hunkin said: “In some cases heating oil prices reported by Devon residents have more than doubled within a matter of days, leaving many households facing the prospect of unaffordable heating bills just as they prepare to refill their tanks.

“Alongside this, similarly steep increases are being reported in LPG, red diesel, fertiliser as well as increases in road fuel. These costs are fundamental to both daily life and agricultural production in rural areas, and the pace of the increases is deeply alarming for households and businesses alike.”

Home heating oil prices have more than doubled in around a fortnight, with prices on aggregator Boiler Juice sitting at 134.2p a litre on March 7, having been as low as 60.46p on February 28. They have reduced slightly to around 128p per litre today (Tuesday, March 17).

Cllr Cottle-Hunkin continued in her letter: “There are around 41,000 households in Devon that rely on heating oil as their primary source of heating, with many thousands more dependent on other off grid fuels.

“Unlike households connected to the mains gas grid, these residents are not protected by Ofgem’s price cap.

“As a result, rural households are uniquely exposed to sudden shocks in global fuel markets. For many families, particularly older residents and those on fixed or modest incomes, the sudden spike in heating oil prices presents an immediate and serious affordability challenge.

“Red diesel and fertiliser are essential to agricultural operations and the sharp escalation in prices threatens farm viability, food production and the resilience of the rural economy.

“Devon’s farming sector plays a vital role not only in the county’s economy but also in the nation’s food security.”

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