Fuels: Excise Duties
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of changes to fuel duty on households and businesses reliant on road transport.
Answered by Dan Tomlinson
The Government recognises the pressures faced by households and businesses that rely on road transport, particularly during periods of global volatility which affect fuel prices. That is why the temporary 5p per litre cut to fuel duty has been extended to 31 December 2026, ensuring there will be no increases to fuel duty this year and providing universal support for motorists and other fuel users.
Compared to plans inherited from the previous Government, keeping fuel duty frozen means petrol and diesel will be around 11p per litre cheaper through the rest of 2026, saving the average driver around £120 by the end of the year, with larger savings for Vans (£250) and HGVs (£2,120).
Alongside this universal support, the Government is providing targeted support for sectors most exposed to higher fuel prices, including cutting red diesel by over a third from mid June to support farmers and providing hauliers transporting goods around the country with a 12-month holiday from Vehicle Excise Duty (VED) from 1 July, worth £600 to the typical HGV.
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