Government Confirms 5p Fuel Duty Cut Will Remain in Place
The Treasury said the freeze will cost £455 million and save a typical heavy lorry operator £600 a year.
- Prime Minister Sir Keir Starmer announced the 5p fuel duty cut will remain in place until August 31, 2026, extending relief meant to "protect motorists" from rising oil prices.
- Disruptions in the Strait of Hormuz caused by Iran's conflict have driven United Kingdom fuel costs up by 26p per litre. The RAC reported on Tuesday that average petrol prices reached 158.5p per litre, the highest since December 2022.
- Downing Street confirmed the £455 million package includes a "12-month road tax holiday" for hauliers. The Treasury stated this reduces their annual renewal cost to £1, saving operators up to £912 on larger vehicles.
- Carlisle MP Julie Minns welcomed the decision, noting typical motorist savings of around £120. Steve Gooding of the RAC Foundation said the news shows "ministers have registered the financial pain" caused by pump prices.
- Chancellor Rachel Reeves is expected to outline longer-term fuel duty plans during the autumn Budget. Future policy remains uncertain, as it is unclear whether the 5p cut will continue beyond 2026.
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And it has approved other measures in support of road hauliers and farmers, also because of the war in the Middle East
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The Council of Ministers is expected to confirm the excise duty cut. Find out how this measure will impact the fuel market.
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