Fuel duty freeze: Government extends 5p fuel duty cut

The Government’s planned September 2026 increase to fuel duty has been delayed until the end of the year – as drivers face increasing prices at the pumps as a result of the war in Iran.

Originally introduced by the Conservatives in 2022 following Russia’s invasion of Ukraine, the 5p reduction was due to end in September 2026.

However, Prime Minister Sir Kier Starmer announced at the House of Commons: “Families across the United Kingdom are facing impacts of a war that we did not choose.

“This is not our war, but while the parties opposite wanted to jump into it, Labour will always protect working people.”

The freeze on fuel duty has been repeatedly extended to help drivers across the UK since it was introduced.

On Monday, the average price of a litre of petrol eclipsed the previous Iran war high on 15^th April, and there are fears that more increases are expected.

The average price of petrol is now 19.3% more expensive than it was on 28^th February 2026, when the war in the Middle East began.

Diesel has dropped by 5.62p since peaking on 15^th April when it was 49.2p more expensive than at the end of February. 

• RAC Fuel Watch – petrol and diesel prices in the UK
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RAC head of policy Simon Williams said: "Drivers are struggling with the cost of filling up, especially now petrol has reached an Iran War high of 158.73p a litre, so the decision to keep the 5p fuel duty in place for the time being is very welcome. 

"The Prime Minister's announcement that duty won't go up this year means a penny won't go back on in September, followed by a further 2p in December.

“The big question is now: what will happen next year and will drivers be hit with the full 5p in one go in the spring, will a new phasing be agreed, or will the Government even abandon an increase altogether?"