The Chancellor Rachel Reeves is expected to announce later this week that she is shelving the planned 5 pence per litre increase in fuel duty.
The move, expected to be announced on Thursday May 21 as part of range of measures to help business and families, comes after fleets have been hit with unprecedented rising pump prices as result of the Iran war.
Within the Autumn Budget fuel duty was identified as being frozen at its current rate until September 2026, after which it would increase by 1p from September 1, 2026, 2p from December 1, 2026, and 2p from March 1, 2027.
The Treasury currently receives roughly half of what people pay on the forecourt.
Plans to abandon the fuel duty rise will cost an expected £2.4bn.
Further information:
https://www.independent.co.uk/news/uk/politics/rachel-reeves-fuel-duty-scrap-iran-b2978480.html