The UK Government has extended its freeze on fuel duty until the end of 2026, reversing a plan to phase out a temporary 5p-per-litre cut that had been in place since Russia's invasion of Ukraine in 2022.
Sir Keir Starmer made the announcement at Prime Minister's Questions on 20 May, framing it as a direct response to rising petrol and diesel prices driven by the US-Israeli military campaign in Iran.
"We're backing drivers by extending the freeze in fuel duty for the rest of the year," the PM told the House of Commons.
The decision marks a significant U-turn for Chancellor Rachel Reeves, who had planned to allow the 5p cut to expire in September – a move that would have added around £120 (US$162) to the average driver's costs over two years.
There is certainly pressure at the UK’s forecourts right now.
