Fuel Duty rates 

The measure

The government intends to extend the temporary 5p fuel duty cut first introduced in the Spring Statement 2022 for a further five months. This will maintain the cut for heavy oil (diesel and kerosene), unleaded petrol and light oil by 5p per litre and the proportionate percentage cut (equivalent to 5p per litre from the main fuel duty rate of 57.95 pence per litre) for other lower rates and the rates for rebated fuels. 

This cut will be reversed in three stages: 1p on 1 September 2026, 2p on 1 December 2026 and 2p on 1 March 2027, meaning a full return to rates at pre-March 2022 levels. 

The planned inflation increase for 2026/27 will also not take place as the government intends to uprate fuel duty rates by Retail Prices Index from April 2027. 

Who will be affected?

Manufacturers, importers, distributors, retailers, households and business consumers of fuel products. 

When will the measure come into effect?

The cut will now begin to expire on 1 September 2026 with the cut being fully reversed by 1 March 2027.