As diesel prices soar to 185p per litre, Lord Richard Walker—the executive chairman of Iceland and Sir Keir Starmer’s cost of living tsar—has urged the Labour government to consider extending or increasing fuel duty cuts to support drivers.
In an interview on BBC Radio 4’s Today programme, Lord Walker highlighted the looming expiry of the current 5p-per-litre fuel duty cut in September. “Given the current situation, it’s important we think about extending or even enlarging this cut,” he said, noting that Australia recently implemented a 14p per litre fuel tax reduction, which surpasses the UK’s 5p relief.
Lord Walker also addressed comments from Tory peer Lord Simon Wolfson, who argued that the Treasury should avoid profiting from the Iran war and instead use fuel duty adjustments to relieve cost pressures on businesses and consumers.
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In the November 2025 budget, Chancellor Rachel Reeves confirmed the 5p duty cut would only last until the end of August, after which fuel duty rates will gradually return to pre-cut levels over five years. Prime Minister Sir Keir Starmer has committed to reviewing the planned duty increase in September in response to developments in Iran, while the government has launched a price comparison website to help motorists find cheaper fuel.
Despite these efforts, opposition parties have pushed for faster and more substantial measures to reduce petrol and energy costs, especially as household energy bills are expected to rise later this year.
A Treasury spokesperson emphasized a cautious approach: “Fuel duty is frozen until September, and we are providing targeted support for those affected by higher heating oil costs. We are committed to protecting people from unfair price hikes and tackling food inflation at the checkout.”