Stories

Wed, 20 May 2026

Wed, 20 May 2026 Fuel duty freeze extended until the end of the year

Fuel duty was initially cut by 5p in March 2022, under the Conservative government.

* The 5p cut on fuel duty will be extended until the end of the year, instead of being phased out in September.
* The decision was made by Prime Minister Keir Starmer due to events in the Middle East affecting global oil supplies.
* The fuel duty freeze is expected to cost £455m for the current tax year.
* The average price of petrol has hit its highest level since the start of the Iran war, reaching 158.52p a litre.
* A new announcement plans to cut the fuel duty rate on red diesel by over a third from mid-October until the end of the year.
* There will also be a 12-month holiday on vehicle excise duty for HGVs, expected to save hauliers around £600 per typical heavy lorry.