Fuel price news

Fuel duty was due to rise on 1 September. It did not.

Petrol and diesel duty was set to go up by 1p a litre on 1 September 2026, and by 2p more on 1 December. In May the Government put both steps back to 2027 and cut the duty on red diesel by more than a third. Here is what was decided, and what it is worth.

Published 3 October 2026 · Fuel Finder UK team

The short version: duty on petrol and diesel is still 52.95p a litre, and stays there until 31 December 2026. Under the old plan it would be 53.95p today and 55.95p from 1 December. With VAT, that is 1.2p a litre you are not paying now, or 66p on a 55-litre fill. Red diesel duty fell from 10.18p to 6.48p a litre on 15 June.

What was planned, and what happened

From2025 Budget planIn force nowSaving at the pump, with VAT
To 31 August 202652.95p52.95p0p
1 September 202653.95p52.95p1.2p
1 December 202655.95p52.95p3.6p
1 January 202755.95p55.95p0p
1 March 202757.95p57.95p0p

Duty per litre on petrol and diesel. Rates in force from GOV.UK. The 2025 Budget steps as reported by the RAC Foundation. The pump figures are ours.

The Prime Minister announced it in the House of Commons on 20 May 2026, and the Treasury confirmed it the same day. The rates are set out in the Government's notice, Amended Fuel Duty rates: 2026 to 2027, published on 22 May 2026.

The notice gives the reason as “elevated fuel prices arising from the Iran war”.

The plan it replaced came from the November 2025 Budget: 1p on 1 September 2026, 2p on 1 December and 2p on 1 March 2027, as the RAC Foundation set out on the day of the announcement.

Nothing new came off the duty on petrol or diesel. The 5p cut made in March 2022 was kept for four more months, so the two steps due this year did not happen. The 3p they add up to is now due on 1 January 2027.

What it is worth at the pump

VAT is charged on the whole price of a litre, duty included. So 1p of duty is 1.2p at the pump.

Fill a 55-litre tank twice a month and that comes to about £8 between 1 September and the end of the year.

On 3 October 2026 the UK average was 174.9p a litre for petrol and 200.1p for diesel. Had the September rise gone ahead and been passed on in full, those would be about 176.1p and 201.3p.

It is a small saving next to what prices have done. On 26 May 2026, six days after the announcement, petrol averaged 159.4p and diesel 185.0p. By 8 July they had fallen to 150.7p and 164.6p. Both have climbed since. On 3 October petrol was 15.5p a litre above its 26 May price, and diesel 15.1p. Read Diesel is £2 a litre for where that leaves forecourts now.

The red diesel cut

Red diesel is the dyed, lower-taxed diesel used off the road: in farm machinery, on the railways and for some heating, among other things. It cannot be used in cars, vans or lorries on the road, so this part does not change what you pay at a forecourt.

Its duty was cut by 3.7p a litre on 15 June 2026, from 10.18p to 6.48p, until 31 December. On 1,000 litres that is £37 less duty. The Treasury calls it a cut of over a third and the lowest rate in over 20 years.

Duty on a litre of red dieselRates in force and due, as at 3 October 2026
Before 23 March 202211.14p
23 March 2022 to 14 June 202610.18p
15 June to 31 December 20266.48p
From 1 January 202710.76p
From 1 March 202711.14p

Source: GOV.UK, Amended Fuel Duty rates: 2026 to 2027 and Fuel Duty rates 2022-23. The rates are before VAT.

The same announcement gave hauliers a 12-month road tax holiday, which the Treasury puts at £600 for a typical heavy lorry.

What happens next

As things stand, duty on petrol and diesel goes to 55.95p a litre on 1 January 2027 and 57.95p on 1 March 2027. With VAT that adds 3.6p a litre in January and 6p in total from March, which is £1.98 and then £3.30 on a 55-litre fill.

Red diesel duty is due to rise to 10.76p on 1 January and 11.14p on 1 March, which is where it stood before 2022.

Those dates could move again. The Government's notice says it will confirm the final rates at the 2026 Budget.

What you can do about it

How Fuel Finder UK helps

How we worked it out

Duty rates and dates are from GOV.UK. The red diesel rate before the cut, 10.18p, is from GOV.UK's Fuel Duty rates 2022-23. The pump figures add 20% VAT to the duty and assume forecourts pass a change on in full. 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: the 3 October 2026 figures are from our UK average page that day, and the 26 May and 8 July figures are from downloads of the same data on those dates.