The current reduction in fuel duty is due to come to an end in September
Rachel Reeves has insisted the spring statement won’t bring any major policy changes, but for petrol and diesel car owners this could be a blow in itself as the 5p per litre fuel duty cut is due to come to an end in September this year. Campaigners are urging the Chancellor to announce an extension or U-turn on these plans and cancel any planned increases.
The experts have also highlighted that recent growing tensions in the Middle East may already be worsening the financial situation for the fuel industry and those relying on it to get around.
Howard Cox, Founder of FairFuelUK, said: “In light of the ongoing crisis in the Middle East, Rachel Reeves must declare in her spring statement that Fuel Duty will remain frozen for the duration of her Parliament and cancel any planned increases in the Autumn Budget.
“This move would not only be economically prudent, stimulating GDP growth and alleviating inflationary pressure, but it would also provide some much-needed political relief to this government, known for its frequent U-turns.”
If the Treasury’s current plans for fuel duty go forward, the tax will gradually increase from September 2026 to reverse the 5p cut that was introduced in 2022 as a temporary measure. The 5p cut was originally meant to expire in March 2026, but was extended.
This 5p per litre will be reintroduced in stages:
- 1p on 1 September 2026
- 2p on 1 December 2026
- 2p on 1 March 2027
The official policy paper from February 2026 notes: “The planned increase in line with inflation for 2026 to 2027 will not take place.”
While campaigners had already been calling for the fuel duty rise to be reversed, the pressure has only mounted following the recent military actions in the Middle East.
As a result of the recent activity, the Hormuz Strait off the coast of Iran is facing prolonged disruptions. This waterway handles around 20% of the world’s oil supply.
This has triggered a rise in oil prices over the past few weeks, with Brent crude oil hitting $73 by the end of February and nearing $80 in the run-up to the spring statement. FairFuelUK anticipates that the price per barrel could rise to $100 within weeks.
If this happens, it could add up to 20p to the cost of a litre of petrol or diesel. This is based on historical patterns, such as in 2022 when oil hit $120 following the invasion of Ukraine.
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