Rachel Reeves has been urged to "rethink" over plans to hike petrol and diesel fuel duty prices over concerns motorists across the UK face a "double hit" at the pumps. Fuel duty is set to increase in three stages, with the first 1p rise coming in September, followed by a 2p increase in December and then a further 2p hike in March 2027.
The rise is set to reverse the 5p cut introduced by the Conservatives in 2022 but comes at a difficult time amid the ongoing fuel uncertainty. Petrol costs are up more than 10p per litre since the start of conflict in the Middle East, with diesel fees up over 20p per litre. It has prompted calls for Reeves to reverse her decision and hold off the increase to allow fuel prices to settle.
Iain Reid, head of Editorial at Carwow, a leading online European marketplace for buying and selling new and used cars, stressed that more tax could come as a serious blow to road users.
Speaking exclusively to Express.co.uk, Iain said: "Fuel prices are already rising due to global instability, and the UK's temporary 5p fuel duty cut is only in place until August 2026.
"After that, duty will be phased back in, increasing in stages through to March 2027. If global oil prices continue to climb at the same time, motorists could face a 'double hit' of higher wholesale fuel costs and higher tax.
"That said, current increases remain modest compared with previous shocks, and there's no sign of widespread shortages. The priority for policymakers is stability; avoiding sudden tax increases during a volatile period would help protect already stretched households. Therefore, we would urge the Government to rethink and freeze duty beyond August to help already squeezed motorists."
Reeves' refused to U-turn on fuel duty price hikes at her Spring Statement despite pressure from her political rivals, the Tories' Kemi Badenoch and Reform's Nigel Farage. Last week, Prime Minister Sir Keir Starmer suggested that fuel prices would be kept "under review" in light of what was happening in Iran.
A fuel duty increase would see tax costs rise from 52.95p per litre to 57.95p per litre, the cost paid by drivers before 2022.
But, it would be the first time fuel duty taxes have increased in any capacity since 2011 and could prove unpopular among motorists.
Despite this, Ian stressed that simply freezing the planned fuel duty rise was not a sensible long-term plan.
He told Express.co.uk: "This would only provide short-term relief, longer-term solutions like accelerating the shift to more efficient hybrid and electric cars are needed to reduce the UK's overall reliance on fuel."
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