UK Extends 5p Fuel Duty Cut for Motorists but Raises Rebated Diesel Rates from June 2026

Certain motorists will face new costs from June 15, 2026 after the government changed fuel duty rules. Prime Minister Sir Keir Starmer and Chancellor Rachel Reeves announced measures last month to protect motorists from fuel price hikes since the start of the Iran war. The 5p per litre fuel duty cut was extended until December 31, 2026.

The cut had been scheduled to phase out starting in September 2026. Other measures will be introduced from June 15, 2026 until December 31, 2026.

7p per litre effective June 15, 2026. 48p per litre. 48p per litre rebated rate.

Red diesel is dyed red to indicate it is taxed at a lower rate. Its use is restricted to certain vehicles only.

HM Revenue and Customs states red diesel can be used by agricultural vehicles, special vehicles, mowing vehicles and unlicensed vehicles. Vehicles using red diesel must be used for qualifying purposes. Drivers must check that their vehicle is entitled to use red diesel.

Legislative default rates will return to their previous trajectory from January 1, 2027. The government will confirm final fuel duty rates at the Autumn Budget 2026 expected in October or November 2026. 95p per litre.

67p per litre. 43p per litre. 33p per litre.

95p per litre. 76p per litre. 33p per litre. 33p per litre.

76p per litre. 95p per litre. 95p per litre. 76p per litre.

76p per litre. 85p per litre. 52p per litre.