Petrol and diesel motorists could be hit with even higher charges to stay on the roads under new expected tax rises.
Petrol and diesel owners could be hit with a new £100 charge, with Rachel Reeves lining up another tax hike. The Chancellor has refused to commit to reversing the planned fuel duty price hike, with the first rise set to take effect within months.
Fuel duty will rise 1p in September, before a 2p increase in January 2026 and April 2026 as part of a 5p increase, ending the 2022 5p cut and bringing fuel duty fees back to 57.95p per litre. Reeves has come under immense pressure to scrap the latest rise, which experts have predicted could cost motorists an extra £100. Other European nations have already taken action, with Australia halving fuel taxes and Ireland cutting duties on petrol and diesel costs.
Experts have claimed fuel duty fees could add £100 to bills (Image: Getty)
However, when asked directly whether fuel duty costs could be reduced in line with other nations, Reeves suggested that she didn’t want to “undo” the work she had done to put public finances on a “firmer footing.
Addressing whether plans for fuel duty fees would be updated, Reeves told the BBC at the start of April: “If I promised that I could alleviate every price increase for every person, I wouldn’t be telling the truth, because all that you will be doing if you do that is pushing up inflation, interest rates and taxes in the future.
“We’re working now on contingencies for a whole range of scenarios to ensure that we can step in without spending money that we can’t afford as a country and will only end up putting up prices.”
Experts at the Road Haulage Association have warned that an increase in fuel duty costs would trigger a £7.3billion jump in household living costs between now and 2029. The group warned that the average family would end up paying around £100 extra next year, but this could increase to around £360 by 2029.
However, there is still a possibility that the planned fuel duty increase could be ditched. The Chancellor confirmed officials were looking at different options and were “planning for different eventualities”.
Labour has come under pressure to cut costs, with campaigners such as FairFuelUK demanding action.
Meanwhile, the Liberal Democrats have called ror an emegency 10p cut to fuel duty, while the the Conservatives and Reform UK questioned the September rise.