Motorists across the UK are preparing for a potential surge in fuel costs this week, as Chancellor Rachel Reeves considers ending a crucial financial relief measure.
Budget Day Decision on Fuel Duty
The key policy under threat is the 5p per litre cut in fuel duty, which has been in place since 2022. This temporary measure was introduced to support households during the cost of living crisis and has played a vital role in stabilising prices at the pumps.
With the Budget scheduled for Wednesday, there is growing speculation that the Chancellor will allow the cut to expire. This decision comes despite her previous pledges to support families with living costs, highlighting the significant pressure she faces to raise tax revenue after U-turning on plans to increase income tax.
Immediate Impact on Household Budgets
If the duty cut is scrapped, drivers will see an immediate increase in the cost of petrol and diesel at forecourts nationwide. This would deliver a fresh blow to household finances already stretched by the ongoing cost of living crisis.
Howard Cox, Founder of the campaign group FairFuelUK, issued a stark warning to the government. “Keeping fuel duty frozen at the very least will be one of the best fiscal stimuli for this unpopular Government’s chances of restoring faith in its leadership,” he said. “In contrast, hiking it could be the final political blow in Labour’s succession of self-inflicted disasters.”
Expert Warnings and Calls for Extension
Fuel experts have echoed these concerns, pointing out that many families are still financially vulnerable. A spokesperson from Your NRG stated: “Many households are still dealing with the lasting impact of higher living costs, so even a small increase in fuel duty would be felt immediately.”
The expert added, “The current 5p reduction has helped to stabilise prices at a time of wider economic pressure. Removing it could mean drivers paying more at precisely the moment they can least afford it.”
Motoring campaigners are now making a final plea to the Chancellor to extend the fuel duty cut in Wednesday's Budget, arguing it is essential for both economic stability and political credibility.
