Government extends cut in fuel duty

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petrol pump filling car

The 5p cut in fuel duty will continue for the rest of the year, instead of ending on 1 September as planned.

Announcing the postponement during Prime Minister’s Questions in the House of Commons, Keir Starmer said it is due to the impact of the Middle East war.

Fuel duty was cut by 5p in 2022 and it has been frozen ever since. It was due to rise by 5p between September and March.

There will also be a 12-month road tax holiday for hauliers, which the government said means they will pay £1 at renewal, saving £600 for a typical heavy lorry and £912 for the biggest vehicles. 

The fuel duty rate on red diesel, used by farmers and rail freight, will be reduced by over a third from 10.18p to 6.48p per litre from 15 June until the end of 2026.