Labour has issued a statement over possible petrol and diesel price rises ahead of Rachel Reeves’ Budget decision on November 26. Fuel duty could increase by up to 5p per litre from next Spring when the temporary cut expires in March 2026.
The Conservatives first introduced the cut in 2022, but Labour decided to keep the policy in place last Autumn. However, financial pressures mean the benefit could be lost with petrol and diesel owners set to feel the sting at the pumps. Labour addressed the issue after the topic was brought up in the House of Commons on Tuesday morning.
FairFuelUK’s 15th annual “open to all” pre-Budget opinion poll found three in every four voters who opted for Labour in 2024 want to see fuel duty cut. The latest survey, which secured 36,000 responses, also found that one in ten Labour voters want fuel duty fees scrapped completely.
Speaking in Parliament, Lewis Cocking, Conservative MP for Broxbourne said: “In a new poll, FairFuelUK has found three out of four road users who voted Labour want fuel duty to be kept frozen or reduced.
“Will the Chancellor listen to the people who put her into Government and ensure this regressive tax, which hits low income families and economic growth the hardest, is not increased?”
Labour confirmed the 5p cut was still set to expire in March 2026 and it was Ms Reeves’ decision whether or not to keep it in place.
Dan Tomlinson, Secretary to Rachel Reeves replied: “The 5p cut to fuel duty is set to expire in March 2026 and…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 has not been increased by a Chancellor since 2011, but now could be the time with Treasury revenues predicted to fall in the coming years.
Average revenues are expected to stand at around £22.64billion by the end of the decade, a stark contrast to the £27.7billion between 2019 and 2020. Motorists ditching petrol and diesel combustion models for electric vehicles is part of the issue.
Sheena McGuinness, Co-Head of Energy and Natural Resources at RSM UK stressed it was “highly likely” fuel duty fees could be about to change.
She said: “Fuel duty receipts continued their downward trajectory in September, reflecting the ongoing transition from petrol and diesel vehicles to electric vehicles (EVs). While this shows progress towards realising the UK’s net zero ambitions, reduced fuel duty is creating a widening gap in public finances which the government needs to tackle.”
