New fuel duty regulations came into force on June 15, introducing changes that will affect thousands of drivers across the UK. Introduced by Chancellor Rachel Reeves and the Labour government, these adjustments will stay in place until December 31.
Key changes include a further reduction of 3.7p per litre in the rebated rates for gas oil (red diesel), biodiesel, and bioblend fuels. Specifically, the new duties for marked gas oil, kerosene used as fuel in excepted machines (excluding heating), biodiesel, and gas oil bio blend for excepted machines have been set at 6.48p per litre.
At the recent budget announcement, Reeves confirmed a freeze on fuel duty would continue for nine months. However, a temporary 5p cut introduced by former Prime Minister Rishi Sunak in 2022, in response to Russia’s invasion of Ukraine, will end in September.
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Labour leader Keir Starmer reinforced the government’s commitment to maintaining a fuel duty freeze through the end of the year. Additionally, he announced a 12-month vehicle tax holiday for hauliers aimed at easing financial pressure and keeping transport costs down.
Starmer emphasized that rising fuel prices are influenced by global events, like the US-Israeli tensions with Iran, stating, “This is not our war, and while some want to escalate, Labour will always stand by working people.”
In official Treasury statements, Chancellor Reeves highlighted the economic rationale behind the measures: “The war in Iran is pushing up fuel prices here at home, but after strong growth earlier this year, I am stepping in to protect people at the pump. By safeguarding households and businesses, we are building a stronger and more secure British economy. This is the right economic plan.”