Chancellor John Healey has confirmed there will be no increase in fuel duty this year, amid persistently high petrol and diesel prices.
Asked if motorists will be at the forefront of his mind for the upcoming Autumn Budget, Mr Healey told The Sun: “Yes, and just as we, as a Government, have done for the last two years, we’ve already said there’ll be no increase in fuel duty this year.
“I know the cost of fuel is still high. I’m very aware of the Middle East, as many people are, and the way that that’s putting pressure on prices at the pumps, prices in the supermarket, just prices on stalls. So we take that into account.”
Fuel duty rates and background
UK fuel duty is a flat tax charged on every litre of petrol and diesel sold at the pump. The current main rate is 52.95 pence per litre, which includes a temporary 5p-per-litre cut, frozen until December 31, 2026.
The temporary 5p cut was introduced by the Tory Government in 2022, when the war in Ukraine shook energy prices. The same is now happening due to the war in Iran. Former prime minister Sir Keir Starmer extended the 5p cut until December 31, 2026, to help with rising costs.
Impact on motorists and businesses
The Chancellor added: “This isn’t just a cost of living. This is a cost of business for many. When five million people are self-employed, for many of them, the cost of living is also the cost of business, and fuels are the heart of that.”
The average price of standard unleaded petrol in the UK is approximately 161.4p to 162.2p per litre, according to data from mid-August 2026. The average price of diesel is 181.5p to 182.0p per litre.
Recent price trends
In July, petrol prices reached their highest since November 2022. Prices had gone down thanks to the ceasefire between the US and Iran, only to spike again this month, reaching 160p.
There is no single cheapest petrol station for the entire UK, but hypermarket brands like Costco and major supermarkets like Tesco, Asda, and Sainsbury's generally offer the lowest average prices.
