Labour has refused to rule out a potential fuel duty increase, which could result in petrol and diesel drivers across the UK paying more for their fuel.
In the House of Commons earlier today, Lewis Cocking MP questioned whether the Government had plans to make any changes to the rate of fuel duty.
He highlighted data from FairFuelUK that found that three in four road users who voted for Labour in the last election want the Government to extend the freeze or even reduce the rate.
Chancellor Rachel Reeves confirmed in last year’s Autumn Budget that the Government would be extending the freeze on the 5p reduction of fuel duty.
This was first introduced in 2022 following the Russian invasion of Ukraine, which sent oil costs spiralling and impacted petrol and diesel prices across the UK.
The five pence cut on the price of fuel duty was designed to cut prices for British drivers, by lowering the rate to 52.95p per litre.
This has been extended every year, with the Chancellor confirming that the rate would remain frozen until March 22, 2026, while the planned inflation increase was scrapped.
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?”
Labour announced that a decision on fuel duty would be made at the Budget later this month
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In response, Daniel Tomlinson MP, who serves as the Exchequer Secretary to the Treasury, outlined the Government’s plan for fuel duty.
The Labour MP for Chipping Barnet 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.”
Chancellor Rachel Reeves will confirm the Government’s spending plans in the Autumn Budget on Wednesday, November 26.
While fuel prices remain stable, the UK saw the most expensive costs for petrol and diesel in the months following the initial cut.
In July 2022, petrol hit a peak of 191.53p per litre, while diesel car owners were paying an average of £1.99, although many saw prices exceed £2.
At present, drivers are paying 135.33p per litre for unleaded and 142.91p for diesel, although RAC Fuel Watch doesn’t forecast any major changes.
Motorists could be paying above the odds when choosing to buy their fuel at a motorway service station, with average costs as high as 158p for petrol and a staggering 168p for diesel.
A DESNZ spokesperson confirmed that Fuel Finder is ‘on track’
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PALabour remains headstrong in introducing the Fuel Finder scheme, which would allow motorists to see the latest petrol and diesel prices in their local area.
Estimates suggest that the scheme could help drivers save between one and six pence per litre, delivering huge savings over the course of a year, especially for high-mileage drivers.
The scheme will require petrol stations around the UK to report prices and the unavailability of fuel within 30 minutes of a change, with hopes it will be introduced before the end of the year.
A Department for Energy Security and Net Zero spokesperson said: “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.”