UK Extends Fuel Duty Freeze Until End of 2026

UK Prime Minister Keir Starmer announced an extension of the existing fuel duty freeze until the end of 2026. The decision postpones a planned 5p per litre increase that had been scheduled to take effect between September and March 2027. The government also introduced temporary reductions in fuel duty for red diesel used by farmers and rail freight.

The rate will drop from 10.18p to 6.48p per litre starting 15 June and remain in place until the end of the year.

Hauliers will receive a 12-month holiday from heavy goods vehicle excise duty. The change means operators renewing their licences will pay £1, saving £600 for a typical heavy lorry and up to £912 for vehicles with the highest liability.

The government issued two short-term licences allowing limited imports of Russian oil refined into diesel and jet fuel in third countries. Officials stated that no existing sanctions have been lifted and described the licences as a phased approach to new restrictions.

Officials linked the price pressure to supply concerns after the effective blockade of the Strait of Hormuz. Opposition members questioned the timing of the licences and contrasted them with restrictions on new domestic oil and gas licences. The prime minister said the licences follow methods used by previous governments and other countries to protect consumers while maintaining overall sanctions pressure.