Fuels: Excise Duties
The question
To ask the Chancellor of the Exchequer, what estimate she has made of the cost to the Exchequer of introducing an Essential User Rebate for fuel.
Answered by Dan Tomlinson
The Government is already taking action on fuel affordability at the pump.
At Budget 2025, the Government extended the 5p-per-litre cut for a further five months, until the end of August this year. The Government has also cancelled the increase in line with inflation for 2026/27; instead, rates will only gradually return to early 2022 levels by March 2027. The 5p cut was introduced following Russia’s invasion of Ukraine in 2022.
The Government's action on fuel duty will save an average heavy goods vehicle more than £800 in 2026/27 compared to previous plans, and follows an extended period where freezes to fuel duty have resulted in substantial savings for the haulage industry.
As with all taxes, the Government keeps fuel duty under review.
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