Overview
- Multiple outlets reported Monday that Rachel Reeves will keep the 5p-per-litre fuel duty cut and outline the plan on Thursday as part of a cost-of-living package.
- Scrapping the planned increase is reported to cost the Treasury about £2.4 billion in the near term.
- RAC figures show petrol has climbed from about 132.9p to roughly 158p per litre and diesel from about 142.4p to around 186–187p since the Iran conflict disrupted the Strait of Hormuz.
- The November Budget had scheduled a phased reversal of the temporary cut starting in September and running through March, a plan now expected to be set aside.
- Trade groups and opposition parties stepped up pressure as higher pump prices strained households and small firms, while the OBR warns fuel duty revenues will shrink over time as more drivers switch to electric cars.