Budget 2026: Fuel Duty Cut Extended to July 2027

The Autumn Budget was delivered on 28 October 2026, and for drivers the headline is good news: fuel duty stays at 52.95p per litre and the temporary 5p cut has been extended to July 2027.

What was announced

According to reports published on Budget day by fleet and motoring publications:

• Fuel duty stays at 52.95p per litre on both petrol and diesel. It has been frozen since March 2022.
• The 5p cut, which had been due to end on 31 December 2026, is extended to July 2027 (one report gives 1 July 2027).
• The rise that had been planned for January 2027 is cancelled or deferred. Reports use both words, so the exact wording in the official documents matters.
• The reports we read do not set out what happens to the rate after July 2027. Opposition politicians have said drivers could face a rise then.

Reports on the detail vary a little, so check the official Budget documents on GOV.UK for the final wording.

What it means at the pump

Nothing changes on the forecourt today. Duty was already 52.95p, and it stays there. The planned rises of up to 5p a litre, which would have taken duty back to 57.95p, will not happen in January 2027 as previously reported.

What a future rise would cost

Because VAT applies on top of duty, a 1p change in duty moves the pump price by 1.2p. If duty does rise after July 2027, it would look like this:

For a driver who covers 8,000 miles a year at 40 mpg, 6p a litre adds up to roughly £55 a year. It matters, but it is far smaller than the gap between the cheapest and dearest stations in the same town.

Other motoring measures reported

Reports also mention higher mileage allowance rates for business drivers. We have not verified the figures, so check the official announcement.

What diesel and petrol drivers should still do

Duty is only part of the price. Oil costs, refining margins and the exchange rate matter too, and diesel is currently about 25p a litre above petrol. We explain why in why diesel is dearer than petrol and what affects the price of petrol and diesel.

• Check local prices before you fill up. In our database, the gap between the cheapest and dearest petrol was more than 55p a litre. See how to find the cheapest petrol near you.
• Do not panic-buy. With duty unchanged, there is no Budget-driven jump to beat.
• Watch for news about July 2027. That is when the cut is due to end unless it is extended again.

Find the cheapest fuel near you and see exactly what each station is charging right now.

For the full background on the tax, read fuel duty explained.