UK extends fuel duty cut through end of 2026 and adds support

The UK government has extended a temporary cut to fuel duty, postponing a planned increase that was set to begin this autumn. The move is intended to shield motorists and businesses from rising pump prices linked to global instability.

Prime Minister Keir Starmer announced the policy, confirming the 5 pence per litre reduction introduced in March 2022 will remain in place until at least the end of this year. The duty had been scheduled to rise in stages starting in September, with the full 5p increase phased in by March of next year. Officials stated the decision is a response to cost-of-living pressures and volatility in global energy markets, specifically citing the impact of conflict in the Middle East.

Alongside the main duty freeze, the government announced additional support measures. The duty rate on red diesel, used primarily in agriculture and rail freight, will be cut by over a third until the end of the year. A 12-month road tax holiday for heavy goods vehicles was also confirmed, which the government said could save hauliers up to £912 per vehicle.

The Treasury estimated the fuel duty freeze extension will cost approximately £455 million in the current tax year. The...