Overview
- Average UK pump prices stand at 136.2p per litre for petrol and 144.6p for diesel, the highest since March.
- Chancellor Rachel Reeves is reported to be weighing whether to scrap the 5p-per-litre relief or raise duty in next week’s Budget, a move estimated to raise £2–3 billion a year.
- HM Treasury declined to pre-announce policy, saying tax decisions will be set out at the Budget.
- Motoring and haulage groups including the AA, RAC, PRA and RHA urged against higher duty, with the RHA warning household costs could rise by about £100 a year.
- HMRC data show fuel duty receipts have fallen by £899 million over three years since COVID, driven largely by a £1.25 billion drop in diesel receipts, while the 5p cut introduced in 2022 and extended last autumn remains in place.