The Government is considering scrapping a planned rise in fuel duty as soaring energy costs triggered by the conflict in the Middle East threaten to pile more pressure on households, Energy Secretary Ed Miliband has suggested.
Fuel duty has been frozen for 16 years to ease the burden on motorists during the cost of living crisis. The freeze is currently due to end in the autumn, with Chancellor Rachel Reeves expected to decide in September whether to increase the duty.
But the conflict in the Middle East has pushed up oil prices, fuelling speculation that the planned increase could be shelved. Speaking to Sky News, Mr Miliband said the Government was monitoring the situation closely and would “stand by the British people” in the crisis.
When pressed on whether the freeze would be extended beyond September, Mr Miliband stopped short of confirming any decision but said: “We will have to see where we are, obviously.”
Analysts have warned that prolonged instability in the region could drive up petrol and diesel prices in the UK, which are closely tied to global crude markets. Any decision to scrap the rise would likely be welcomed by drivers and businesses already grappling with higher transport costs.
