Fuel duty freeze 2026: what drivers need to know

Since March 2022, UK drivers have benefited from a 5p per litre cut in fuel duty. Chancellor Rachel Reeves confirmed in the Autumn Budget 2025 that this cut would be extended through to the end of August 2026. But what happens after that?

The current situation

Fuel duty is currently set at 52.95p per litre — that's 5p lower than the standard rate of 57.95p. This temporary cut was first introduced by Rishi Sunak in Spring 2022 when fuel prices spiked following the invasion of Ukraine. It has been extended repeatedly by successive Chancellors, most recently by Rachel Reeves.

What's changing and when

The government has laid out a clear timeline for fuel duty changes:

• Until 31 August 2026 — the 5p cut remains in place. No change for drivers.
• 1 September 2026 — fuel duty increases by 1p per litre.
• 1 December 2026 — a further 2p per litre increase.
• 1 March 2027 — another 2p per litre increase, fully reversing the 5p cut.
• From April 2027 — fuel duty will be uprated annually in line with RPI inflation.

How much will it cost you?

When the full 5p is restored by March 2027, the average driver filling a 50-litre tank weekly will pay roughly £2.50 more per fill-up — about £130 extra per year. If RPI-linked annual increases are then applied, costs will continue to rise.

What you can do

While you can't control fuel duty, you can control where you fill up. Using PumpSaver to find the cheapest stations near you can easily offset these increases. The price difference between the cheapest and most expensive stations in the same area is often 5-10p per litre — far more than the duty increase.