Overview
- New reporting indicates the Autumn Budget on 26 November could end the fuel duty freeze, with ministers also reassessing the 5p-per-litre cut that has been in place since 2022 and currently runs to 22 March 2026.
- Plans under consideration include a new pay-per-mile levy on electric vehicles at about 3p per mile, which analysts estimate could cost the average EV driver roughly £250 a year, with officials citing fairness because EVs do not pay fuel duty.
- Road Haulage Association modelling suggests a 5p fuel duty increase would remove nearly £2 billion from household budgets annually, and its polling finds over 80% of drivers expect higher fuel duty to raise prices of essentials.
- Other driver taxes flagged in reports include Vehicle Excise Duty increases in line with RPI from April 2026, potential changes to classic car exemptions, earlier rises in company car Benefit-in-Kind rates, and adjustments affecting salary sacrifice and public-charging VAT.
- The Treasury has refused to comment on speculation, as RAC data shows average petrol at about 135.33p per litre and diesel at roughly 143p, with a government-backed Fuel Finder tool also expected by some to launch to aid price transparency.