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Petrol and diesel drivers face ‘breaking point’ if Rachel Reeves axes fuel duty freeze in Budget

Millions of drivers around the UK could be slapped with huge cost hikes over the coming years as fears grow about the prospect of fuel duty changes at the Budget.

New data shows that more than 80 per cent of drivers believe a rise in the rate of fuel duty would push up the cost of essentials, like food and medicine.

A further eight in 10 drivers said fuel duty should either stay the same or be reduced, according to polling from the Road Haulage Association.

Chancellor Rachel Reeves confirmed in last year’s Autumn Budget that she would be freezing the rate of fuel duty to protect motorists from unfair pump price rises.

Fuel duty has been cut by five pence per litre since 2022 as the Government aimed to help stabilise petrol and diesel prices in the aftermath of the Russian invasion of Ukraine.

The five pence per litre cut provides savings of around £59 for the average car driver in 2025-2026, while professional drivers could benefit further.

The Chancellor confirmed that the fuel duty freeze would be extended until March 22, 2026, at a cost of £3billion to the Government.

A planned increase in line with inflation for 2025-2026 was also scrapped, which has been the case for the last 14 years.

Petrol station and Chancellor Rachel Reeves

However, as the Government struggles to fill a £50billion financial black hole, fuel duty could be targeted to raise money, even if it forces up prices for motorists.

Modelling from the RHA found that a 5p fuel duty increase would remove almost £2billion from UK household budgets every year.

This could be worth around £7billion between now and 2029, highlighting the importance of fuel duty for millions of drivers and households across the UK.

Richard Smith, MD of the RHA, said: “These new polling results confirm what we’ve been hearing as we travel the country.

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“People understand that when transport costs rise, the prices of everyday essentials are hit hardest, with lower-income households feeling the impact most acutely.

“This week is National Lorry Week and we’re reminding everyone that with over 80 per cent of goods in this country moving by road freight, our industry keeps shelves stocked with essentials.”

He highlighted how additional costs, like a fuel duty hike, could have a huge impact on businesses and motorists, especially on the haulage industry.

The latest data from RAC Fuel Watch outlines that drivers are paying an average of 135.33p per litre, while diesel motorists are forced to pay around £1.43.

Lorry traffic

Although RAC Fuel Watch shows that no significant changes in the price of petrol or diesel will be seen, a fuel duty hike will lead to a rise of at least 5p if the Government removes the freeze.

The new Government-backed Fuel Finder tool could be launched alongside a fuel duty hike, since forecasts show the scheme could help drivers save between one and six pence per litre.

The scheme will require filling stations across the UK to report prices and the unavailability of fuel within 30 minutes of a change to boost competition and force prices down for motorists.

Mr Smith concluded: “Many business and household budgets are stretched to breaking point, and it’s clear many share our concerns. We repeat our call on the Chancellor to keep the freeze on fuel duty”.


LP Staff Writers

Writers at Lord’s Press come from a range of professional backgrounds, including history, diplomacy, heraldry, and public administration. Many publish anonymously or under initials—a practice that reflects the publication’s long-standing emphasis on discretion and editorial objectivity. While they bring expertise in European nobility, protocol, and archival research, their role is not to opine, but to document. Their focus remains on accuracy, historical integrity, and the preservation of events and individuals whose significance might otherwise go unrecorded.

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