"The Treasury had previously insisted the long-frozen fuel duty rate would begin rising gradually from September as part of Labour's broader fiscal plans. But growing concern over the impact of surging energy costs on households and businesses has prompted speculation that ministers may now be preparing a retreat. Under plans announced in last year's Budget, fuel duty - currently 52.95p per litre - was due to begin returning gradually to its pre-2022 levels through a phased series of increases between 2026 and 2027."
"Fuel prices have climbed steeply since disruption to shipping through the Strait of Hormuz intensified during the US-Israeli confrontation with Iran, raising fears over global oil supply and triggering volatility in international energy markets. Petrol prices are estimated to have risen by around 20 per cent since the conflict escalated. In contrast, diesel prices have increased even more sharply, placing additional pressure on motorists, logistics firms and small businesses already struggling with high operating costs."
"The first rise, expected in September, would increase duty by 1p per litre, followed by further increases later in the financial year. However, campaigners and industry groups have warned that implementing the increases during a period of geopolitical instability risks worsening the wider cost-of-living squeeze. Howard Cox, founder of the FairFuelUK campaign, said current fuel costs were "crippling" for many motorists and businesses, arguing that the government had failed to respond to the scale of the economic shock linked to the Middle East crisis."
Fuel duty increases planned to start in September are facing growing pressure as petrol and diesel prices rise sharply across Britain. The Treasury previously planned a gradual return of fuel duty from a long-frozen rate, beginning with a 1p per litre increase in September and further increases later in the financial year, with phased changes between 2026 and 2027. Shipping disruption through the Strait of Hormuz during the US-Israeli confrontation with Iran has intensified, raising fears about global oil supply and increasing volatility in energy markets. Petrol prices are estimated to have risen by around 20 per cent since the conflict escalated, while diesel prices have increased even more. Campaigners and industry groups warn that raising fuel duty during geopolitical instability could worsen the cost-of-living squeeze, and other countries have introduced tax reductions or relief measures.
Read at London Business News | Londonlovesbusiness.com
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