Fuel duty freeze extended until end of 2026
The government has announced it will extend the fuel duty freeze until the end the year.
It was due to increase fuel duty by 5p between September this year and March 2027.
Chancellor of the Exchequer Rachel Reeves added: “I’m keeping taxes down for drivers and businesses – putting money in the pockets of millions of workers and cutting costs for farmers and hauliers.
“The war in Iran is pushing up fuel prices here at home but after strong growth at the beginning of the year, I am stepping in to protect people at the pump. By protecting households and businesses we are building a stronger and more secure economy for Britain. That is the right economic plan.”
Meanwhile, Nick Connor, CEO of the IMI, said: “We welcome the government’s decision to scrap the planned fuel duty increase. With pump prices already at their highest level in years due to the conflict in Iran, any additional burden on motorists and the businesses that depend on the road network would have been extremely damaging.
“The motor industry is on the front line of this cost pressure – our members see every day the financial strain that rising fuel costs place on their own business operations as well as drivers and fleets. Freezing duty is the right call, but it is only a partial solution. We would urge the government to keep the situation under close review and stand ready to do more if pump prices continue to climb.”
