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Planned UK fuel duty rise has been scrapped. What it means for drivers

Stay up to date with notifications from The IndependentNotifications can be managed in browser preferences.Jump to contentThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged inAllNewsSportCultureLifestylePrime Minister Sir Keir Starmer announced the extension of the 5p per litre fuel duty cut for the remainder of the year, overriding previously planned increases. This measure aims to alleviate financial pressure on motorists due to rising pump prices, which have been significantly impacted by the war in Iran and restrictions in the Strait of Hormuz. The decision means the fuel duty rate will hold at nearly 53p per litre, preventing a 1p per litre increase scheduled for 1 September and further rises in December and next March. In addition, hauliers will benefit from a 12-month road tax holiday, paying just £1 at annual renewal, and users of red diesel will see their fuel duty cut from 10.18p to 6.48p per litre until the end of the year. The entire package of measures is estimated to cost £455 million, with future plans for fuel duty beyond 2026 expected to be set out by Chancellor Rachel Reeves in the autumn budget. In fullPlanned fuel duty rise to be scrapped amid rising pump pricesThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in

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