Rachel Reeves’ spring statement could hold some major changes for petrol and diesel car owners
Rachel Reeves has confirmed the spring statement won’t feature any major policy changes, but this could disappoint petrol and diesel drivers as the 5p per litre fuel duty cut is due to end in September this year. Campaign groups are urging the Chancellor to announce an extension or U-turn on these plans and abandon any proposed rises.
Experts have also highlighted that escalating tensions in the Middle East may already be worsening the financial pressures facing the fuel industry and those who rely on it for transportation.
Howard Cox, Founder of FairFuelUK, said: “In light of the ongoing crisis in the Middle East, Rachel Reeves must declare in her Spring Statement that Fuel Duty will remain frozen for the duration of her Parliament and cancel any planned increases in the Autumn Budget.
“This move would not only be economically prudent, stimulating GDP growth and alleviating inflationary pressure, but it would also provide some much-needed political relief to this government, known for its frequent U-turns.”
Should the Treasury push ahead with its current fuel duty proposals, the tax will increase gradually from September 2026 to reverse the 5p reduction brought in during 2022 as a temporary measure. The 5p cut was originally due to expire in March 2026, but was given an extension.
This 5p per litre will be reintroduced in stages:
- 1p on 1 September 2026
- 2p on 1 December 2026
- 2p on 1 March 2027
The official policy document from February 2026 states: “The planned increase in line with inflation for 2026 to 2027 will not take place.”
Whilst campaigners had already been calling for the fuel duty rise to be scrapped, pressure has mounted following recent military operations in the Middle East.
Due to the latest developments, the Strait of Hormuz off the Iranian coast is experiencing continued disruption. This vital shipping route handles roughly 20% of the world’s oil supplies.
The situation has pushed oil prices higher over recent weeks, with Brent crude hitting $73 by late February and nearing $80 ahead of the spring statement. FairFuelUK predicts the price per barrel could climb to $100 within weeks.
Should this happen, motorists could face an extra 20p per litre at the pumps for petrol or diesel. This forecast is based on historical precedents, such as 2022 when oil reached $120 following Ukraine’s invasion.
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