With figures from HMRC showing that tax revenues from fuel duty continue to fall, the Chancellor, Rachel Reeves, was expected to reverse the 5 pence cut.
However, she has decided fuel duty will be frozen at its current rate until September 2026. It will then increase by 1p from September 1, 2026, 2p from December 1, 2026, and 2p from March 1, 2027.
RAC head of policy Simon Williams said: “Drivers will be relieved the Chancellor has decided to keep the 5p duty cut in place for now. But this relief will be very short-lived given the staggered increase from next September.
“Without the discount, drivers would still be paying more for a litre of petrol than they were prior to Russia’s invasion of Ukraine in February 2022 which sent pump prices rocketing to record levels.
“The introduction of the long-awaited Fuel Finder in early 2026 will also be a big moment – for the first time, all petrol stations will need to report their prices allowing customers to find the cheapest fuel wherever they are.”
Edmund King, AA president, added: “Continuing the fuel duty freeze removes one of the big concerns for millions of drivers, their families, and businesses.
“With fuel still accounting for a significant share of household spending, maintaining the 5p freeze will save drivers £3.30 a tank.”
Source: Fleet news