Fuels: Excise Duties
The question
To ask the Chancellor of the Exchequer, whether the Government intends to maintain current levels of fuel duty beyond the end of 2026 if fuel prices remain elevated.
Answered by Dan Tomlinson
On 20 May, the Government announced support for households and businesses with their fuel costs, in response to the conflict in the Middle East. This included extending the temporary 5p cut to 31 December 2026, providing universal support and ensuring there will be no increases to fuel duty this year.
This is a temporary measure to support drivers and businesses facing higher fuel costs linked to the Iran war. The government will continue to keep fuel duty under review and will take a decision in the round at Budget on future fuel duty rates for 2027.
During the period of support, the CMA will continue to monitor and scrutinise fuel prices and advise the government if further action is needed to protect consumers.
The government’s Fuel Finder scheme is also now live, which will help consumers compare prices more easily, encourage competition among retailers and help drive down costs at the pump. The scheme could save households who own a car around £40 a year.
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