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UK fuel duty explained: how much tax is in a litre of fuel?

Fuel duty is 52.95p a litre plus 20% VAT. How much of what you pay goes to tax, the 5p cut, and what to watch for at the Budget.

Updated 22 October 2026 · FuelPriceAtlas

Roughly 45–50% of what you pay for petrol or diesel in the UK is tax. There are two parts: fuel duty and VAT.

The numbers

ItemRate
Fuel duty (petrol and diesel)52.95p per litre
VAT20% of the price including duty

VAT is charged on top of duty, so duty is taxed too. At 172p a litre, VAT is about 28.7p and duty 52.95p – around 82p of tax, or 47% of the price. At 195p for diesel it is about 85p, or 44%.

The 5p cut

Duty was 57.95p until March 2022, when the government cut it by 5p. The cut has been extended repeatedly; in May 2026 the planned September rise was cancelled and the lower rate was extended to 31 December 2026. A 3p rise (and a further 2p in March 2027) would follow if the cut is not extended again, but decisions are expected at the Budget on 28 October 2026 – check GOV.UK for the current rate before you rely on any figure.

Why it matters at the pump

A 1p change in duty is a 1.2p change at the pump because of VAT. A 5p duty change is about 6p a litre – around £3 on a 50-litre fill-up.

Frequently asked questions

How much is fuel duty per litre?

The standard rate for petrol and diesel is 52.95p a litre in autumn 2026, after the 5p cut introduced in March 2022.

Is VAT charged on fuel duty?

Yes. VAT at 20% is applied to the price including duty, which is why a 1p duty rise adds about 1.2p at the pump.

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