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UK Pump Prices Climb to Seven–Eight‑Month Highs as Fuel Duty Decision Looms

AA data points to a renewed squeeze on motorists, intensifying scrutiny of whether the 5p‑per‑litre duty relief will be allowed to lapse in next week’s Budget.

Overview

  • Average prices stand at 136.2p per litre for petrol and 144.6p for diesel, the highest since March, according to the AA.
  • The AA says removing the temporary 5p‑per‑litre duty relief would lift averages to about 142.2p for petrol and 150.6p for diesel, near pre‑Covid record levels from 2012.
  • Chancellor Rachel Reeves faces pressure over fuel duty choices in the Autumn Budget, with media estimates suggesting ending the relief could raise £2–3 billion a year.
  • Motoring and haulage groups warn households could pay around £100 more annually and that higher pump and freight costs would feed through to prices, with one industry estimate putting added household costs at £7.3 billion by 2029 if the cut expires.
  • Officials say the Fuel Finder price‑transparency scheme is on track, with government modelling indicating potential savings of 1–6p per litre, while AA analysis reports an extra roughly £1.2 billion in VAT from motoring in 2023–24 and about £24.9 billion in total VAT.