Heating Oil Costs (Agriculture Sector and Rural Industries)

Portfolio Question Time – in the Scottish Parliament at on 25 March 2026.

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Photo of Christine Grahame Christine Grahame Scottish National Party

To ask the Scottish Government what discussions it has had with the United Kingdom Government regarding whether any of the support announced in response to the increased cost of heating oil will help the agriculture sector and other rural industries in Scotland that are dependent on that fuel. (S6O-05695)

Photo of Jim Fairlie Jim Fairlie Scottish National Party

The £10 million Scottish emergency oil heating scheme, which commences on 1 April, includes £4.6 million from the UK Government and is for households and individuals. Scottish ministers are writing to the UK Government about the significant impacts of increased costs on farmers, including the lack of regulation on kerosene and red diesel, as well as the implications for our domestic food supply and overall food security. Many of the levers to help address the issues are reserved, and the Scottish Government remains in close contact with the UK Government to monitor the situation as it unfolds in order to understand what can be done to alleviate pressures as they arise.

Photo of Christine Grahame Christine Grahame Scottish National Party

I hope that the UK Government responds positively. It needs to be reminded of how important our farming community is in providing high‑quality food and drink for domestic consumption and for export. Food and drink is Scotland’s top international sector and is valued at £8 billion annually.

Does the Minister agree that the London-centric UK Government overlooks the contribution of our rural communities and our farming communities? As a last word in my many years in the Parliament, I will say that that is particularly the case in my Constituency ofMidlothian South, Tweeddale and Lauderdale.

Photo of Jim Fairlie Jim Fairlie Scottish National Party

I thought that Christine Grahame’s last contribution was going to be yesterday, but here she is, back again and making sure that she continues to represent her constituents.

Christine Grahame is absolutely right to make the point that she has made. She is correct that London does not understand Scottish agriculture and what the food and drink sector in Scotland is delivering. We are supporting and protecting the farming sector with the powers that we have. That is in stark contrast with policies in other parts of these islands.

We continue to provide our farmers and crofters with the most generous package of support, worth more than £660 million per annum. That support is vital in underpinning food production and helping businesses to deal with a wide range of issues, from supply chain shocks to volatile commodity markets. The published rural support plan now provides the industry with certainty for the years ahead, so it should have the confidence to invest for the long term.

Photo of Liam McArthur Liam McArthur Liberal Democrat

A number of members would like to ask supplementary questions. I will try to get them all in, but the questions will need to be brief.

Photo of Rachael Hamilton Rachael Hamilton Conservative

I congratulate my friend and colleague Christine Grahame on her time here, and I wish her well in the future.

I agree with the Minister and Christine Grahame that heating Bills are doubling and that rural areas are particularly affected. Farmers are bearing the brunt of the war in the middle east, which will also have an impact on food production. Should people who could be eligible for potential funding order their fuel now, or should they hold off? What will be the eligibility criteria? Will the Scottish National Party Government shape the fund to recognise rural challenges?

Photo of Jim Fairlie Jim Fairlie Scottish National Party

I absolutely recognise the points that Rachael Hamilton has made. We do not have the details for the scheme at the moment; we will need to get more details. The uncertainty does not help anyone, so it is incumbent on everyone to try to reverse from the positions that we have got ourselves into, or been put into, to ensure that we provide stability not only to farmers but to everybody who relies on food, which is all of us.

Photo of Emma Harper Emma Harper Scottish National Party

Given the challenges that Christine Grahame outlined and the Scottish Government’s commitment to a just transition, how can the Government support investment in biofuels and anaerobic digestion to reduce reliance on heating oil and provide greener, more secure energy for rural industries such as those in Dumfries and Galloway and the Borders?

Photo of Jim Fairlie Jim Fairlie Scottish National Party

We want to encourage new innovative techniques, but, as Emma Harper knows, the energy system is reserved. We need to look at how we can make ourselves far more resilient through using our own fuel in Scotland, and there are a number of ways in which we can do that.

Photo of Willie Rennie Willie Rennie Liberal Democrat

Farmers in my Constituency are deeply concerned about the rise in fuel costs and the potential rise in the cost of fertiliser, which could come soon. I am keen to make representations to the UK Government on a cross-party basis, but we need to gather the evidence first. Can the Minister assure us that he is gathering all the evidence necessary to make a powerful case to the Westminster Government?

Photo of Jim Fairlie Jim Fairlie Scottish National Party

I very much welcome Willie Rennie’s Intervention, because that is exactly what we need to do. The representations cannot be made on anything other than a cross-party basis. We need to work together on food resilience, which is the most vital thing that we can have in this country. I am more than happy to continue to work with anyone in the chamber who wants to help us to get to that situation.

Photo of Finlay Carson Finlay Carson Conservative

Members will be aware that it is snowing in some parts of Scotland, so heating is incredibly important. Has the Government assessed the scale of hardship among off-grid households, including many in my Galloway and West Dumfries Constituency, who do not qualify for means-tested benefits? Will the Government consider a broader scheme that reflects the circumstances of those households? When is it likely that the money will be in people’s accounts?

Photo of Jim Fairlie Jim Fairlie Scottish National Party

The scheme will be open from 1 April, but, as I said to Rachael Hamilton, some details are still to be worked out. Finlay Carson’s point is absolutely valid. We need to get the situation under control so that the people of Scotland have access to what we have—we have a massive fuel supply, but we still have to pay the highest prices.

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