Overview
- Chancellor John Healey confirmed in the Budget on Wednesday, October 28, 2026 that the 5p-per-litre fuel duty cut will be kept in place until July 2027.
- The Budget also raises the higher mileage rate from 25p to 35p per mile and makes permanent an earlier increase to the standard mileage rate for people who use cars for work.
- Campaigners such as FairFuelUK welcomed the decision but warned that freezing duty is not the same as cutting it, while the Road Haulage Association pressed for targeted support such as time-limited rebates for commercial operators.
- Independent data cited by coverage shows pump prices remain high, with RAC Fuel Watch reporting about 173.19p per litre for petrol and 198.94p per litre for diesel, keeping pressure on motorists and small businesses.
- Before the Budget the government had planned a 3p rise in January 2027 and a return to 57.95p per litre in March, so the extension delays those increases and gives short-term relief while reducing near-term tax receipts.