NFU Scotland has called for an urgent review of fuel tax in the light of increasing prices, and its resulting impact on production costs.

NFUS is writing to the Chancellor of the Exchequer, Alistair Darling, expressing its concern at the price of farm diesel, which has almost doubled since January 2007.

Likewise, the cost of regular road fuel is soaring and this has had a disproportionate impact upon those living in rural areas with further to travel to reach essential services and for whom public transport provision is inadequate.

In response to approaches through Alistair Carmichael, MP for Orkney and Shetland, the Chancellor has agreed to a meeting between NFUS and himself or another Treasury minister.

Jim McLaren, NFUS president, said: "Speaking to our members during the recent Grangemouth disruption, their biggest concern was not so much the supply of fuel, but the crippling cost of it. We've had reports today of red diesel being priced at around 67p per litre, up from 36p at the start of 2007. The situation on normal road diesel is also desperate and worsening."

McLaren added: "When you add that in to rocketing energy, fertiliser and animal feed costs, the situation is getting hugely worrying on the ground.

"The Chancellor has just recently expressed his concerns at food price inflation. However, he has yet to show any willingness to meaningfully address the problem of fuel prices that are a major contributor to food production and transport costs. The Treasury's income from fuel continues to escalate whilst farmers struggle to meet costs and consumers feel the pinch at the tills.

"This is about more than getting a commitment to freeze duty or postpone tax increases. We need a wholesale review of fuel tax if ministers are to avoid making the current food supply and price concerns worse. If the UK government genuinely feels our pain', as they claim, then it is time they acted.

"They have the ability to alleviate this problem, the question remains if the have the will to do so."