Fuel Duty Update: 5p Cut to be Phased Out from September 2026

Fuel Duty Update: 5p Cut to be Phased Out from September 2026

UK motorists are facing a gradual increase in costs at the pumps as the government confirms the reversal of the temporary fuel duty reduction. Starting in September 2026, the 5p-per-litre cut—originally introduced in 2022 to combat the cost-of-living crisis—will be systematically withdrawn.

The Roadmap to 57.95p

The government has opted for a phased approach to reintroducing the full duty rate, aiming to avoid a sudden “price shock” for households and businesses. The current rate of 52.95p per litre for unleaded petrol and diesel will rise back to the pre-2022 level of 57.95p over three distinct stages:

  • 1 September 2026: An initial increase of 1p per litre.
  • 1 December 2026: A further increase of 2p per litre.
  • 1 March 2027: The final 2p increase, returning duty to its original 2022 rate.
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Inflation Hike Avoided

While the return to the higher duty rate will be unwelcome news for many, there is a small silver lining for drivers. The government has confirmed it will not move forward with a previously proposed plan to increase fuel duty in line with inflation.

This decision means that while the 5p discount is disappearing, motorists are being spared a more aggressive price hike that could have pushed duty rates significantly higher than the 57.95p mark.

Impact on UK Drivers

For the average family car with a 55-litre tank, the full 5p reversal will eventually add approximately £2.75 to the cost of a full refill. Logistics companies and independent couriers are expected to feel the pinch most acutely, as the phased increases begin to bite during the busy 2026 winter period.


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