UK Extends 5p Fuel Duty Freeze to Year-End at £455 Million Cost
Updated
Updated · BBC.com · May 20
UK Extends 5p Fuel Duty Freeze to Year-End at £455 Million Cost
3 articles · Updated · BBC.com · May 20
A 5p-per-litre fuel duty cut will now run through the end of 2026 instead of expiring in September, with the Treasury putting the cost at £455 million for the current tax year.
Starmer said the move responds to Middle East tensions after the US-Israel war in Iran lifted global oil and LNG prices; average petrol hit 158.52p a litre on Monday, RAC data showed.
The package also cuts red diesel duty by more than a third to 6.48p a litre from mid-June through year-end and grants HGVs a 12-month vehicle excise duty holiday worth about £600 per typical lorry.
Downing Street said stronger economic growth created room for the freeze, but the RAC said uncertainty remains over whether drivers face the full 5p rise next spring or another extension.
Conservatives called the decision a U-turn after pressing for it in March, while the freeze itself dates to a March 2022 cut introduced after Russia's full-scale invasion of Ukraine.
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