Overview
- Average pump prices now stand at 136.2p per litre for petrol and 144.6p for diesel, the highest since March, according to the AA.
- Removing the temporary 5p-per-litre duty cut, worth about 6p with VAT, would lift averages to roughly 142.2p for petrol and 150.6p for diesel by the AA’s calculations.
- Press estimates suggest scrapping the relief could raise £2–£3 billion a year for the Treasury, with duty otherwise frozen at 57.95p since 2011.
- AA analysis says consumer motoring inflation delivered an extra £1.236 billion in VAT across 2023 and 2024, while HMRC data show fuel duty receipts fell by about £899 million and diesel taxation by £1.25 billion in the three years since the pandemic.
- Industry bodies warn higher duty would raise costs for drivers and hauliers, with the RHA estimating about £100 more per household annually, and HM Treasury says tax policy will be decided at the Budget and declines to comment on speculation.