Measure
The government will freeze fuel duty rates for 2025/26. This will mean the temporary 5p per litre cut in fuel duty rates will be extended by 12 months and will expire on 22 March 2026, and the planned inflation increase for 2025/26 will also not take place.
Manufacturers, importers, distributors, retailers, household and business consumers of fuel products.
The temporary 5p cut has been extended by a further 12 months and will now expire on 22 March 2026.
This measure will maintain the cut in the rates for heavy oil (diesel and kerosene), unleaded petrol, and light oil by 5p per litre as introduced at Spring Statement in March 2022, as well as there being no inflationary increase.
This means that the fuel duty rate applied to standard petrol and diesel will remain at 52.95p per litre, where it has been frozen since 2011-12.
Considering the speculation that fuel duty rates may increase, the measure is expected to be welcomed by businesses and households alike as a way to minimise energy costs.