Fuel duty changes 2026 – how will it impact drivers?

Fuel duty is changing, which means drivers will pay more for petrol and diesel from September 2026.

Currently set at 52.95p per litre, fuel duty generates around £24 billion in revenue for the Government.

However, the rate of fuel duty will rise by 5p per litre over the coming months, as the Government rolls back a temporary cut that was introduced in 2022.

As a result, by March 2027, the average cost to fill up a 55-litre car fuel tank with petrol or diesel will rise by £2.75 a tank.

The change in fuel duty will end the 5p cut that was introduced in March 2022 at the height of the energy crisis, when pump prices approached £2 per litre.

The 2022 Conservative Government introduced the temporary 5p cut to help motorists manage the surge in fuel costs.

According to the Office for Budget Responsibility (OBR), the change in fuel duty will raise £0.4 billion.

The OBR’s Economic and Fiscal Outlook document states: “This is based on the policy announced in the November 2025 Budget that the 5p cut is to be unwound in three stages, with the first reversal planned for September 2026, and duty rates are then planned to be uprated with RPI from 2027-28.

“Relative to the November forecast, receipts are up by £0.4 billion on average over the forecast due to slightly stronger-than-expected outturn this year.”

When is fuel duty going up?

The Government has said it will not increase fuel duty in 2026–27 in line with inflation, even though it normally rises each year based on the Retail Price Index (RPI).

From the 2027–28 financial year onwards, the usual inflation‑linked increases will start again.