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Policy

Fuel Duty Increase

Other Revenue Fuel Duty Increase

Policy:

Increase fuel duty to 75p per litre and have a downward adjustment mechanism if oil price increase/spikes outside of control of the UK from external events.

Main fuel duty rate is currently 52.95p per litre

The fuel duty has been frozen since 2010, meaning it hasn't risen with inflation for over 14 years. If it had it risen with inflation it would be at a rate of 86.73p per litre

In 2025-26, fuel duties are expected to raise £24.4 Billion for the government.

Propose to increase to 75p per litre and have a downward adjustment mechanism if oil price increase/spikes again for reasons outside of control of the UK from external events.

Annual Revenue Increase of £12 Billion