Fuel duty rise from next year, budget reporting suggests

Current fuel duty rates for diesel and petrol have been frozen for a further five months beyond the current fiscal year, including the temporary 5p cut, according to early reporting on Rachel Reeves’ autumn budget measures.

But leaked documents from the Office for Budget Responsibility (OBR), accidentally published prior to the chancellor’s speech in the House of Commons, suggest that the freeze will only remain until September 2026, at which point the government will begin to reverse the 5p cut in a staggered, three-staged approach.

From April 2027, the government will then increase fuel duty rates annually by the retail price index (RPI) measure of inflation, according to the OBR forecast.

The changes would represent the first increase in fuel duty in 16 years.

The news comes in spite of a warning last week by trade group Logistics UK, suggesting that a rise in fuel duty could have a significant inflationary impact, as well as concerns raised by the Road Haulage Association (RHA) that a hike in the tax would further increase the cost of living.

In the opening remarks of her budget speech, which is currently being delivered in the Commons, Ms Reeves said the leak of the OBR’s report was “deeply disappointing”.

More information as it comes to light.