Massive attacks in the Middle East overnight as prices at the pump in the UK hit new highs spark October budget plan call
Andy Burnham has been told to make a 12p a litre fuel change – equating to around a 2p a mile saving – as prices at the pumps soar to new levels. The RAC said that in “very unwelcome news for drivers” the average pump price had reached 160p a litre, reversing the fall to 151p in early July that followed the announcement of a ceasefire.
The current price is the highest level since November 2022, when it soared following Russia’s invasion of Ukraine. Diesel is up 14.5p to 179p but the price remains below the high of 192p in April, the RAC said.
“This means the cost of filling a family-size car with unleaded has gone up to £88, while a tank of diesel is £10 more,” said the RAC’s Simon Williams. “The wholesale price of petrol eased very slightly this week but is not enough to make a difference at the pumps.
“Diesel looks set to keep on rising and is likely to reach 185p a litre in the next few weeks, barring any major oil price reduction.” In the House of Commons yesterday, Chancellor John Healey came under pressure to make a big change to the fuel duty.
Last night massive attacks took place in the Middle east as the US struck multiple Iranian tankers in response to more attempted missile attacks on a Navy warship, officials have said. Tehran responded by launching missiles at a US base in Jordan – most of which were shot down – and said it attacked two US vessels and eight oil tankers in the Strait of Hormuz, showing the conflict is escalating.
Liberal Democrat Christine Jardine said: ”The Liberal Democrats have called for an emergency cut of 10p per litre, which would make a difference of 12 per litre at the pump for ordinary families. For my hard-pressed constituents in Edinburgh West this winter, that could make a big difference not only to their travel costs, but to the cost of food and other services. Will the Government consider that emergency cut in the forthcoming Budget?”#
A 12p per litre change at the UK pumps translates to a shift of roughly 0.9p to 1.8p per mile, depending directly on how fuel-efficient your vehicle is
This was in response to The Financial Secretary to the Treasury and Paymaster General James Murray who had said:”As part of the £600 million package the Government announced in May, there will be no rise in fuel duty this year. This means that the temporary 5p cut will be extended till the end of the year, providing certainty to motorists. In total, the decisions taken since the 2024 general election to freeze fuel duty save motorists 11p per litre, or £120 per year for the average car, compared with the plans inherited from the previous Government.”
In answer to the 10p a litre point Mr Murray claimed that government action since the general election had ‘reduced fuel prices by 11p per litre compared with what they would have been otherwise’. “As I set out in my earlier remarks, the 5p cut has been extended to the end of the year, and as she would expect, any future decisions will be taken at the Budget by the Chancellor.”
Tory Greg Smith said: “I cannot believe the Minister just said he wanted to give families breathing space when the RAC Foundation has found that, since fuel prices increased due to international issues earlier this year, the Treasury has raked in £1 billion extra from the VAT on fuel. How can it possibly be fair on motorists or give them any breathing space whatsoever to carry on with another fuel duty hike in January?”
Mr Murray replied: “The hon. Gentleman is right to point to the fact that international events have an impact on prices here at home. We did not want to get involved in that conflict, unlike the Conservative party. None the less, we are impacted by it, and the right thing for us to do as a Government is to make sure we are providing breathing space for families as we weather international events.”
The UK Autumn Budget will take place on Wednesday, October 28 2026.
