Fuel duty freeze maintained until July 2027

Chancellor John Healy has confirmed that the current freeze on fuel duty will be extended until July 2027.

Announced as part of the Autumn Budget, the move aims to lower the impact of increasingly high petrol and diesel prices on motorists.

It marks the 16th consecutive year that fuel duty has been frozen, with the extended 5p cut looking to increase the ‘breathing space’ for households and businesses.

Healy told MPs: “Earlier this year, the Government extended the 5p cut to fuel duty and slashed red diesel to its lowest rate in over 20 years.

“With the war in the Middle East still driving high fuel prices, I am extending these tax cuts for motorists through the winter and spring to July, supporting households, hauliers, and farmers.

“And for anyone who relies on their car for their work, from care workers to engineers, I am increasing the higher mileage rate from 25p to 35p per mile, and making permanent the increase to the standard mileage rate introduced earlier this year.”

The price of a litre of diesel has recently nudged past the record £2p a litre mark, some 56.5p higher than at the outbreak of the war between the US and Iran.

Howard Cox, Founder of FairFuelUK, said: “Thank goodness a smidgeon of common sense has prevailed. Freezing Fuel Duty is a victory for drivers, businesses, and sustained campaigning. But let’s be absolutely clear: a freeze is not a cut.”