Labour set to freeze fuel duty in Budget as petrol and diesel drivers secure victory

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Labour set to freeze fuel duty in Budget as petrol and diesel drivers secure victory

TL;DR

  • Chancellor John Healey is expected to freeze fuel duty in the upcoming Budget.
  • This decision comes amid pressure due to soaring petrol and diesel prices, exacerbated by the war in the Middle East.
  • Diesel prices reached their highest ever level in October.
  • The fuel duty freeze would continue a policy initiated in 2022 by Rishi Sunak.
  • A Treasury source indicated the freeze aims to support motorists and working people.
  • Current average prices are 173.45p per litre for petrol and 198.86p for diesel.
  • Without a freeze, fuel duty rates are scheduled to increase in January 2027 and March 2027.
  • Inflation-linked rises could lead to the highest fuel duty rates in 16 years by April.
  • The road haulage industry is facing significant extra costs, with businesses paying an extra £385 per week per vehicle.
  • Eight in 10 people surveyed expressed concern about fuel price rises.
  • The Road Haulage Association has called for the planned fuel duty rises to be scrapped and for a rebate for businesses.