An increase in fuel duty that was scheduled for September has been abandoned, Prime Minister Sir Keir Starmer announced to MPs. The 5p per litre fuel duty reduction, initially introduced by the Conservative government in March 2022, will now remain in place for the remainder of the year.
Previously, rates were set to rise from September, gradually reverting to earlier levels over the next five years. However, the ongoing conflict with Iran and restrictions on tankers passing through the Strait of Hormuz have significantly impacted fuel prices. The average price of a litre of petrol and diesel at UK forecourts is now 26p and 44p higher, respectively, than before the conflict began on February 28.
Steve Gooding, director of the motoring research charity the RAC Foundation, commented: "While today's announcement on fuel duty may not immediately reduce forecourt prices, it does indicate that ministers have acknowledged the financial strain caused by soaring pump prices for both individuals and businesses. Since the start of the Iran conflict, drivers have already paid an astonishing £3 billion war premium in inflated fuel prices, with half a billion of that going to the Exchequer in VAT receipts."
