Fuel price news

Fuel duty goes up in January. Here is what it adds to a tank.

Fuel duty has not gone up since 2011. The 5p cut made in 2022 is now due to end in two steps in early 2027. Because VAT is charged on top of duty, 5p of duty is 6p at the pump.

Published 7 October 2026 · Fuel Finder UK team

The short version: duty is 52.95p a litre today. It is due to be 55.95p from 1 January 2027 and 57.95p from 1 March 2027. With VAT, that adds 3.6p a litre in January and 6p a litre from March. On a 55-litre fill it is £1.98 more in January and £3.30 more from March.

What is changing, and when

FromDuty per litreExtra at the pump, with VATExtra on 55 litres
Now, to 31 December 202652.95p0p£0.00
1 January 202755.95p3.6p£1.98
1 March 202757.95p6.0p£3.30

Rates for petrol and diesel from GOV.UK. The pump and tank figures are ours, compared with today.

The rates come from the Government's own notice, Amended Fuel Duty rates: 2026 to 2027, published on 22 May 2026. They apply to petrol and diesel alike.

If you have read different dates elsewhere, that is because the plan changed. The 2025 Budget set a 1p rise for 1 September 2026, 2p for 1 December and 2p for 1 March 2027. In May 2026 the Government kept the full 5p cut until the end of the year, so the first two steps became a single 3p rise on 1 January.

Why 5p of duty is 6p at the pump

VAT is charged on the whole price of a litre, duty included. So every penny of duty arrives with 20% on top. A 3p duty rise is 3.6p at the pump, and the full 5p is 6p.

Many headlines quote £2.75 on a 55-litre tank. That is the duty alone. With VAT it is £3.30.

How much of a litre is tax already

On 2 October 2026 the UK average was 200.0p for diesel and 174.8p for petrol. Here is how a litre breaks down at those prices.

What is in a litre of diesel at 200.0pUK average price on 2 October 2026

Duty is 52.95p a litre. VAT is 20% of the price before VAT, which is one sixth of the pump price.

What is in a litre of petrol at 174.8pUK average price on 2 October 2026

Duty is 52.95p a litre. VAT is 20% of the price before VAT, which is one sixth of the pump price.

Tax is 86.3p of a litre of diesel, or 43%, and 82.1p of a litre of petrol, or 47%. The duty is a fixed amount per litre, so it is a bigger share of the cheaper fuel.

What it does to the price you pay

If nothing else changed, the 2 October averages would become about 206.0p for diesel and 180.8p for petrol from March.

Nothing else changing is a big if. The oil price moves pump prices far more than duty does. Diesel rose 35.4p a litre between 8 July and 2 October 2026, about six times the full duty rise. But a duty rise is permanent, and it lands on every forecourt in the country on the same day.

Over a year it adds up. Fill a 55-litre tank twice a month and the full 6p costs about £79 a year.

Could it change again?

Yes. These dates have moved before, most recently in May 2026, and the Chancellor can change them at a Budget. Until the Government says otherwise, 1 January and 1 March 2027 are the dates in force.

What you can do about it

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How we worked it out

Duty rates and dates are from GOV.UK. The pump figures add 20% VAT to the duty change. Tank costs use 55 litres, the size of a typical family car's tank. The average prices are ours, from the official CMA fuel price data at 2:51pm on 2 October 2026, and the UK average page has today's figures.