The Labour Party has signaled it will not rule out raising fuel duty, a move that could lead to steep price increases at petrol stations operated by Tesco, Sainsbury’s, Asda, and Morrisons. Currently, a 5p cut on fuel duty is in place but is scheduled to expire on March 22, 2026, raising concerns about future fuel costs for drivers across the UK.
During a session in the House of Commons, Conservative MP Lewis Cocking asked whether the Government planned to adjust the fuel duty rate. Cocking argued that increasing this “regressive tax” would disproportionately affect low-income families and hinder economic growth.
In response, Daniel Tomlinson, Exchequer Secretary to the Treasury, confirmed that while the 5p duty cut is due to end in 2026, any final decision on fuel duty rates will be made during the upcoming Budget, considering the state of the public finances.
Fuel duty forms part of the total price paid at the pump for petrol, diesel, and other vehicle fuels, in addition to standard VAT charges — 20% on most fuel and 5% on domestic heating fuel.
Ahead of the Budget, the Department for Energy Security and Net Zero emphasized the importance of pricing transparency. Their Fuel Finder initiative will require retailers to share real-time fuel prices, ensuring drivers receive fair and competitive rates.