Chancellor John Healey is expected to freeze fuel duty and maintain the temporary 5p per litre discount in his first Autumn Budget, a move that would spare motorists from a price rise at the pumps.
The decision would mark the 16th consecutive year that fuel duty has been frozen, according to the Sun. The temporary 5p cut, first introduced in March 2022, had been due to end in December 2026 after several extensions. Without action, the price would have risen by 3p per litre from January 2027, followed by a further 2p from March.
Record pump prices
The move comes as UK drivers face some of the highest petrol and diesel prices on record, partly driven by the US-Iran conflict. According to the RAC, diesel drivers are now paying an average of 200.01p per litre, the highest level since June 2022, while petrol drivers are paying 174.71p per litre.
A 55-litre tank of petrol now costs £96.09, which is £23.03 more than before the US-Iran conflict began. Filling the same-sized tank with diesel costs £110.01, up £31.70 compared with February 28.
RAC head of policy Simon Williams said: “This is a pump price threshold that no one wanted to cross – the average price of a litre of diesel has risen to a record 200.01p and is showing no signs of slowing, heaping more misery onto motorists.”
Williams added: “The cost of filling up an average family car is now £110, almost £32 more than it was at the start of the US/Iran war. This will be very challenging for households and companies that drive a lot of miles, from commuters, haulage and delivery firms, businesses with large fleets all the way through to sole traders.”
Everyday fixes for households
The Autumn Budget is set to be delivered on Wednesday, October 28. Healey is also expected to work on “everyday fixes” for UK households, including making tax-free mileage rates higher for millions of drivers and extending parental pay to 150,000 more people, including self-employed dads.
Healey said: “Today’s everyday fixes are just a small part of what we are doing to give families a bit of breathing space. Conflict in the Middle East and Europe is hitting families here through higher costs. We can’t control global events but we can act where we can make a difference.”
A Treasury source told the Sun: “Healey knows motorists have been hit hard by the cost of getting around, especially people who have no choice but to drive for their job. The Chancellor will show he’s on their side with practical support for millions of working people.”
