Prime Minister Sir Keir Starmer has announced the extension of the 5p per litre fuel duty cut for the remainder of the year, scrapping previously planned increases. The move aims to ease financial pressure on motorists as pump prices soar due to the war in Iran and restrictions in the Strait of Hormuz.
What the Decision Means for Drivers
The fuel duty rate will remain at nearly 53p per litre, preventing a 1p per litre increase scheduled for 1 September, as well as further rises planned for December and next March. This extension is part of a broader package of measures designed to support drivers and businesses.
Additional Benefits for Hauliers and Red Diesel Users
Hauliers will benefit from a 12-month road tax holiday, paying just £1 at annual renewal. Users of red diesel will see their fuel duty cut from 10.18p to 6.48p per litre until the end of the year.
Cost and Future Outlook
The entire package of measures is estimated to cost £455 million. Future plans for fuel duty beyond 2026 are expected to be set out by Chancellor Rachel Reeves in the autumn budget.
