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UK Extends 5p Fuel Duty Cut as Petrol Hits 158.5p

The package offers targeted relief without an immediate drop in pump prices.

Overview

  • Facing rising pump costs, the government announced Wednesday it will keep the 5p fuel duty cut through year-end and grant hauliers a 12‑month road tax holiday with a red diesel duty cut.
  • Average petrol now costs 158.5p a litre, the highest since December 2022, and the RAC expects prices to reach at least 160p in the coming weeks.
  • Diesel averages 185.92p a litre, and motoring groups say retailers should be passing through recent wholesale price falls more quickly.
  • The RAC Foundation estimates the Middle East crisis has added about £3 billion to UK drivers’ fuel bills, tightening budgets for households and businesses.
  • Some outlets reported a freeze into 2027, yet the official government statement says the extension runs only for the rest of this year.