The UK government has decided to pause plans to increase fuel duty until the end of next year to protect drivers from rising prices at the pump. Chancellor Rachel Reeves had planned to end the 5p cut introduced in 2022 and raise the current 52.95p rate. This is reported by Autocar.co.uk reports .
According to the initial plan, the tax was supposed to increase by 1p this September, and by a full 5p over the next six months. However, the government decided to extend the discount period to keep taxes low while fuel prices are rising due to the conflict in Iran.
Prime Minister Keir Starmer emphasized that many are feeling the pressure of energy and fuel costs, and that working people are the first to suffer when global events affect prices. According to him, this measure will help reduce costs for millions of drivers.
As a reminder, the 5p discount was first introduced in 2022 following Russia's invasion of Ukraine. The government also provided relief for hauliers by announcing a 12-month road tax holiday. Now, truck owners will pay a symbolic £1 instead of £912 upon renewal.
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