Fuel prices are a constant topic of conversation and cause for controversy. The world is in the midst of a global energy crisis, and many military conflicts are influenced by fuel politics in one way or another. However, to the average person trying to get to work, all we have the bandwidth to worry about is how much it’s going to cost to fill up a tank. This is where topics like the UK fuel duty freeze become particularly relevant.
What is the UK fuel duty freeze?
The UK fuel duty freeze is a government policy that has been in action since 2011, keeping the main rate of fuel duty (essentially a government tax on fuel) at a fixed level, rather than allowing it to rise with inflation. The standard rate, since a 5 pence per litre cut was introduced in March 2022, is 52.95 pence per litre. The cut was introduced to aid with the cost-of-living crisis.
Note: Fuel duty doesn’t have anything to do with the price per litre of fuel wholesale or direct to consumer, which can be impacted by all sorts of various geopolitical influences.
However, the current cut is set to finish in March 2026, and we’ve seen a recent handover in government, which means things are going to change for the average driver. This blog will offer guidance on what the changes in fuel duty are likely to mean for you, so you can better budget for fuel alongside other essentials like regular washes and breakdown cover.
The fuel duty freeze for now
For now, the government has confirmed the freeze will continue until at least March 2026, inclusive of the 5p cut, meaning your tank filling price won’t be impacted by duty for at least the next few months. Right now, the lack of an increase in line with inflation, along with the 5p cut, is saving drivers a fairly significant amount of money.
The potential for a fuel duty increase
The current extension is set to expire in March 2026, meaning prices are likely to increase by the 5p cut, along with rises with inflation. The increase might not be as significant as an increase in line with general inflation from 2011, but it will still most likely be fairly significant. This is due to the government being under significant financial pressure at the moment, with some also theorising that the phasing out of traditional petrol cars is having an impact.
The “Fuel Finder” scheme
News isn’t all bad for your budget. The government is also trying to increase price transparency and competition with a “Fuel Finder” scheme. This scheme, to be introduced by the end of 2025, will require all UK petrol stations to report any price changes or fuel shortages within 30 minutes. This should help drivers find the fairest possible deal on fuel, wherever they are in the country.
With widespread transitions to electric vehicles and the world constantly in a state of international disarray, there are plenty of things that can impact fuel prices all the time. Drivers need to stay on top of government updates and industry publications. For more updates on driving topics, along with evergreen guides, make sure to visit our blog regularly!