Budget on 28 October: will the 5p fuel duty cut be extended again?

Published 22 October 2026

The 5p fuel duty cut runs to 31 December 2026; without an extension duty would rise 3p in January and 2p more in March. Drivers are looking to the Budget.

Fuel duty stands at 52.95p a litre thanks to the 5p cut introduced in March 2022, which the government has extended to the end of December 2026. Without a further extension, duty would rise by 3p a litre on 1 January 2027 and by another 2p in March.

The RAC is calling for the cut to be extended again or for VAT on fuel to be reduced, and says drivers are looking to the Budget on 28 October for relief.

What a change would mean

Because VAT is charged on top of duty, every 1p of duty is about 1.2p at the pump: a 3p rise would add roughly 3.6p a litre, or about £1.80 on a 50-litre fill-up. Read our guide to UK fuel duty.

Sources: Visordown – UK government urged to take action on fuel prices · Full Fact – What is happening with fuel duty? · PetrolPrices – Fuel duty September rise cancelled