Labour could push drivers close to the “worst” petrol and diesel fuel costs in over a decade if Chancellor Rachel Reeves makes one decision at her Autumn Budget. Last year, Labour decided to freeze fuel duty rates and continued with the 5p cut introduced by the Conservatives back in 2022.
However, scrapping the discount and hiking fuel duty rates would send petrol station costs soaring, with road users likely to pay the highest bills since 2012. Predicting petrol and diesel prices over the rest of 2025, AA spokesperson Luke Bosdet predicted “price volatility” would continue. However, he suggested that the threat of a fuel duty price hike was more potent for motorists’ bills, pushing costs above 140p per litre.
Speaking exclusively to Express.co.uk, Luke said: “Price volatility and the postcode lottery remain the bane of UK drivers and I don’t see any change in that. Wars in the Middle East and Ukraine and global economic and financial trouble created by tariffs and other factors make it impossible to predict.
“You also need to remember that, should the Chancellor end the 5p fuel duty cut which is worth 6p with VAT, current petrol prices at above 135p a litre would move to within 2p a litre of the worst UK drivers suffered before Covid and the Ukraine war (142.5p in 2012).”
According to RAC Fuel Watch, petrol prices regularly fluctuated between 120p per litre and 130p per litre between 2013 and 2020. Unleaded petrol prices never exceeded 140p per litre during this period before tanking at the start of Covid.
At one stage, Unleaded petrol fell as low as 101p per litre before costs began spiralling out of control. Costs first exceeded 140p per litre at the back end of 2021, but in the aftermath of the Ukraine War costs increased as high as 190p per litre.
The AA warned that the increase in fuel fees could lead to motorists deciding to ditch petrol and diesel cars and move to electric models.
Luke added: “Little wonder that so many car owners now say that they have had enough being held hostage by government and the fuel trade, and are now switching to electric where home charging is considerably cheaper and predictable.”
