Following Rachel Reeves’ warning ahead of the Autumn budget, this news will be worrying for many
The fuel price increase would affect millions of drivers across the country(Image: Joe Giddens/PA Wire)
The government has not ruled out the possibility of an unwelcome change at petrol stations belonging to Tesco, Sainsbury’s, Asda, and Morrisons. Drivers of petrol and diesel vehicles may face significant price increases as the Labour government outlines its plans for the fuel duty in the upcoming Budget.
The current 5p fuel duty cut is set to expire on March 22, 2026. Labour has indicated that a potential increase in fuel duty could lead to higher prices for petrol and diesel drivers across the UK.
In the House of Commons earlier today, MP Lewis Cocking questioned whether the government intends to make any changes to the fuel duty rate.
Mr Cocking, the Conservative MP for Broxbourne in Hertfordshire, said: “Will the Chancellor listen to the people who put her into Government, and ensure this regressive tax that hits low-income families and economic growth the hardest, will not be increased?”
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In response, Daniel Tomlinson MP, Exchequer Secretary to the Treasury, said: “The House will be aware that the 5p cut to fuel duty is set to expire in March 2026.
“And that, as with other tax policy, the Chancellor will make a final decision on fuel duty rates at the Budget in the context of the public finances.”
Fuel duty is part of the price you pay for petrol, diesel, and other fuels used in vehicles or for heating. Additionally, you pay a standard VAT rate of 20% on most fuels, while domestic heating fuel is subject to a reduced rate of 5%.
A Department for Energy Security and Net Zero spokesperson said in a statement ahead of the Budget: “Fuel Finder is on track. Retailers must give drivers a fair price for their fuel, by passing on any savings at the pump.
“Fuel Finder will ensure retailers share real-time prices, making them more accountable to drivers.”
Labour Chancellor Rachel Reeves warned yesterday that “If we are to build the future of Britain together, we will all have to contribute to that effort. Each of us must do our bit for the security of our country and the brightness of its future.”
This hints at manifesto-breaking tax hikes to come in the Autumn budget. She adds that it was up to her to make the “hard choices” to protect Britain’s economy.
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