The Chancellor delivers the Budget on Wednesday 28 October, and fuel duty is one of the things drivers will be watching. As things stand, the temporary 5p cut ends after Christmas: duty is due to go up by 3p a litre on 1 January 2027 and by another 2p on 1 March 2027.
That timetable isn't final. The government has said it will confirm the rates in the Budget, so they could still change.
The short version
| Fuel duty (petrol and diesel) | Change | Roughly at the pump, with VAT | |
|---|---|---|---|
| Now, until 31 December 2026 | 52.95p a litre | ||
| From 1 January 2027 | 55.95p a litre | +3p | about +3.6p a litre |
| From 1 March 2027 | 57.95p a litre | +2p | about +2.4p a litre |
These rates are from HMRC's amended fuel duty rates for 2026 to 2027, published on 22 May 2026. The pump figures are our own sums: VAT at 20% is charged on top of duty, so each 1p of duty adds about 1.2p to the price you pay, if retailers pass it on in full.
How we got here
Fuel duty was cut by 5p a litre in March 2022, as a temporary measure. It has been extended several times since.
The November 2025 Budget planned to phase the cut out in three steps: 1p in September 2026, 2p in December 2026 and 2p in March 2027 (Full Fact). Then, with pump prices rising sharply because of the conflict in the Middle East, the government announced on 20 May 2026 that it would keep duty at 52.95p until the end of the year. The September step was dropped and the December step moved to January (House of Commons Library).
The same package cut the duty on red diesel, used by farmers and in construction, by a further 3.7p a litre from 15 June to 31 December 2026.
What the rises would cost you
For a typical 55-litre fill-up, if retailers pass the rises on in full:
| Extra per litre | Extra per 55-litre fill-up | |
|---|---|---|
| January rise (3p duty) | about 3.6p | about £1.98 |
| March rise (2p duty) | about 2.4p | about £1.32 |
| Both together (5p duty) | about 6p | about £3.30 |
Duty is a fixed amount per litre, so it's the same for petrol and diesel, and the same at a supermarket as at a motorway services.
Why it matters more this year
Prices are already high. On 2 October, the RAC reported that the average price of diesel had reached a record 200.01p a litre, beating the previous high of 199.09p in June 2022. Petrol averaged 174.71p. That put a 55-litre fill-up at about £110 for diesel and £96 for petrol.
The RAC said the main causes were the conflict in the Middle East and the closure of the Strait of Hormuz to oil and gas shipping. It has since reported that diesel has dipped back below £2.
At those prices, tax makes up a big share of what you pay. On a litre of diesel at 200p, about 53p is duty and about 33p is VAT, so roughly 86p goes to the Treasury. On petrol at 175p, it's about 82p.
What could happen in the Budget
There are three broad possibilities:
- The rises go ahead as planned: 3p in January and 2p in March. This is what happens if the government does nothing.
- The cut is extended again: duty stays at 52.95p for longer, as it has been every year since 2022.
- A bigger cut: the AA is calling for the existing 5p cut to be kept and a further 5p taken off. It says that would be worth about 6p a litre at the pump. The government has said only that decisions will be announced in the Budget.
We don't know which way it will go, and we won't guess. We'll update this post after the Budget on 28 October.
What you can do
You can't control duty, but you can control where you fill up. In its May 2026 monitoring report, the Competition and Markets Authority found that prices for the same fuel within a 10-minute drive differed by up to 16p a litre for petrol and 17p for diesel. That's more than the duty changes above.
- Search your postcode to see every forecourt near you, cheapest first, from live government data.
- Supermarkets are usually cheaper on average. Our guide asks whether supermarket fuel is bad for your car (it isn't).
- Avoid filling up on the motorway if you can. Here's why motorway fuel costs more.
- If you're shopping in a big supermarket anyway, a fuel coupon can help. Our guide to supermarket fuel vouchers explains when they're worth it.
Questions
When does fuel duty go up?
Under current plans, by 3p a litre on 1 January 2027 and by 2p on 1 March 2027. The rates could change in the Budget on 28 October 2026.
How much is fuel duty now?
52.95p a litre for both petrol and diesel. VAT at 20% is then charged on the total, including the duty.
Will petrol go up by 3p on 1 January?
The duty rise is 3p, but with VAT that's about 3.6p a litre at the pump, if retailers pass it on in full. Pump prices also move with oil prices, so the price you see may change by more or less than that.
Does fuel duty affect EV charging?
No. Fuel duty is charged on petrol, diesel and some other road fuels, not on electricity.