Overview
- Official data show hydrocarbon oil duty raised just over £2 billion in August 2025, down 2.4% year on year and more than £500 million below August 2023.
- Fuel duty revenues totaled £24.3 billion in 2024/25, the lowest since 2006/07 when excluding the pandemic year.
- The Office for Budget Responsibility projects fuel duty will account for about 2% of total tax receipts in 2025/26, down from nearly 7% in 2019/20.
- Campaign groups and industry voices, including the ATT, Campaign for Better Transport, the RAC and the Confederation of Passenger Transport, are urging reforms such as emissions‑based road pricing, higher duty or new taxes on EVs.
- RSM UK’s Sheena McGuinness calls for ending the 15‑year freeze and suggests a 10p duty rise or pollution‑scaled road‑usage charges, warning that reversing the freeze and the 5p cut would still leave a revenue gap.