The era of frozen fuel duty is coming to an end. After 16 consecutive years of postponed increases, the Chancellor has confirmed that fuel duty will begin rising from September 2026 – the first increase since 2011.
Current Fuel Duty Rate
The headline rate on petrol and diesel currently stands at 52.95 pence per litre. This includes a temporary 5p cut first introduced in March 2022, which has been extended multiple times and will now end on 22 March 2026.
The Coming Increases
From late 2026, fuel duty will begin a phased return to higher levels:
- 22 March 2026: The 5p temporary cut ends
- 1 September 2026: Additional increase of 1p per litre
- 1 December 2026: Further increase of 2p per litre
- 1 March 2027: Another 2p per litre increase
- April 2027 onwards: Annual increases linked to RPI inflation
This means the rate will gradually return to 57.95p per litre by March 2027, before inflation-linked rises begin.
What This Means for Drivers
For a typical driver covering 7,500-8,000 miles per year, the current freeze and 5p cut represents savings of around £89 per year compared to what would have been paid under pre-2022 plans.
When the increases take effect, expect to pay approximately:
- £2.75 more per tank when the 5p cut ends
- An additional £2.75 by March 2027 as rates reach 57.95p
The Cost of 16 Years of Freezes
The cumulative cost of fuel duty freezes since 2010/11 has reached a staggering £120 billion in foregone revenue. This represents the longest freeze in the tax's history.
Fuel Duty Revenue
Despite the freezes, fuel duties are expected to raise £24.4 billion in 2025-26, representing about 2% of all government receipts. This equates to approximately £850 per household.
New Fuel Finder Scheme
To help offset rising costs, the government has announced a new Fuel Finder scheme launching in spring 2025.
Under this scheme:
- Major supermarkets and retailers must publish prices within 30 minutes of any change
- Fuel unavailability must also be reported
- Estimates suggest drivers could save between 1-6p per litre
This mandatory price transparency should increase competitive pressure and help drivers find the best deals.
What Drivers Should Do Now
- Enjoy stable duty rates while they last: Take advantage until September 2026
- Budget for future increases: Plan for approximately £5.50 more per tank from 2027
- Use price comparison tools: The Fuel Finder scheme will make this easier
- Consider fuel efficiency: Factor running costs into your next vehicle choice