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Treasury Draws Up Plan to End 5p Fuel Duty Relief as Budget Decision Nears

Mounting fiscal pressures plus concerns over retailer margins put the temporary 5p cut under fresh scrutiny.

Overview

  • The Chancellor will decide fuel duty at the Autumn Budget on 26 November, with ministers refusing to rule out changes.
  • The Times reports the Treasury has prepared plans to scrap the 5p-per-litre relief introduced in 2022, with the combined freeze and cut costing about £3 billion a year and a funding gap reported at up to £30 billion.
  • CMA data show fuel retailer margins remain far above historic levels, raising concerns that drivers have not fully benefited from the relief.
  • The government’s Fuel Finder transparency scheme is confirmed as on track, with The Times reporting a February launch requiring stations to publish pump prices within 30 minutes of changes.
  • HM Treasury says it has no plans to introduce road pricing, even as experts urge longer‑term reforms such as pay‑per‑mile taxes to address falling receipts from the shift to electric vehicles.