HMRC confirms Fuel Duty rates for petrol and diesel drivers to December 31

HM Revenue and Customs (HMRC) has confirmed Fuel Duty rates for petrol and diesel drivers from now until the end of the year.

The government last week announced a planned increase in Fuel Duty has been scrapped to help motorists facing rising pump prices due to the war in Iran. The UK-wide tax on petrol and diesel had previously been planned from September, but it will now remain frozen until at least December 2026. The change means the 5p per litre Fuel Duty cut introduced by the Tory government in March 2022 will now be extended for the rest of the year, keeping the rate fixed at 52.95 pence per litre for standard petrol and diesel.

Rates were previously planned to increase by 1p per litre on September 1, with a pair of 2p per litre rises on December 1 this year and March 1 next year.

Iran’s restrictions on tankers passing through the Strait of Hormuz means the average price of a litre of petrol and diesel at UK forecourts is 26p and 44p respectively more expensive than before the conflict started on February 28.

• HMRC confirms new VAT rates for drivers with older cars from May 1

The Fuel Duty freeze was announced alongside other cost-saving measures including a temporary VAT cut from 20% to 5% from June 25 to September 1, 2026, on children’s restaurant meals, child and family tickets for cinemas, theatres and a wide range of attractions, and free bus travel for children aged five to 15 in England this August.

Commenting on the Fuel Duty freeze, RAC head of policy Simon Williams said: "Drivers are struggling with the cost of filling up, especially now petrol has reached an Iran War high of 158.73p a litre, so the decision to keep the 5p fuel duty in place for the time being is very welcome.

"The Prime Minister's announcement that duty won't go up this year means a penny won't go back on in September, followed by a further 2p in December.

“The big question is now: what will happen next year and will drivers be hit with the full 5p in one go in the spring, will a new phasing be agreed, or will the Government even abandon an increase altogether?"

The government also announced that hauliers would benefit from a “12-month road tax holiday”. The Treasury said it would pay £1 at their annual renewal, saving £600 for a typical heavy lorry and £912 for the biggest vehicles on the road.

Farmer, rail freight and other users of red diesel will see their Fuel Duty cut as part of an effort to reduce costs of goods, with the rate reduced from 10.18p to 6.48p per litre from June 15 until the end of the year. Downing Street indicated the package of measures will cost £455 million.

In an update on Friday, May 22, HMRC confirmed the amended Fuel Duty rates for 2026 to 2027 which is likely to affect manufacturers, importers, distributors, retailers and household and business consumers of petrol, diesel and other fuel products that are subject to Fuel Duty.

HMRC said: “This measure will extend the temporary 5 pence per litre (ppl) cut in the rates of Fuel Duty, first introduced at Spring Statement in March 2022, until 31 December 2026.

“The measure also provides a further reduction to the rebated rate for gas oil (red diesel), biodiesel and bioblend by 3.7 ppl from 15 June 2026 to 31 December 2026. The legislative default will be for rates to return to the levels set at Budget 2025 from 1 January 2027, but the government will confirm final rates at Budget 2026.”

Listed are the Fuel Duty rates in pence per litre up to December 31, 2026, as confirmed by HMRC:

Light Oils

• Unleaded petrol: 52.95p per litre

Heavy Oils

• Heavy oil (diesel): 52.95p per litre

Biofuels

• Bioethanol: 52.95p per litre

Road Fuel Gases (£ per kg)

• Road fuel natural gas (including biogas): 22.57p per kg

Other Fuel

• Aqua-methanol: 7.22p per litre