What is fuel duty?
Fuel duty is a tax charged on petrol, diesel and other road fuels in the UK. It is a fixed amount per litre, currently 52.95p, and VAT at 20% is then added on top. A temporary 5p cut from 2022 has been kept in place through 2026, after a planned September 2026 rise was scrapped.
Fuel duty raises around £25 billion a year. Because it is a fixed amount per litre, it does not rise automatically when pump prices go up. VAT is charged on the price including duty, so drivers pay tax on tax. Duty and VAT together usually make up around half the price of a litre of petrol.
Duty was 57.95p per litre until March 2022, when it was cut by 5p after fuel prices soared. Every government since 2011 has frozen it rather than raising it with inflation. A plan to raise the rate in stages from September 2026 was scrapped in May 2026. The 5p cut was extended for the rest of the year.
Fuel duty faces a long-term problem. As more people switch to electric cars, revenue will shrink. That is one reason the government plans a separate pay-per-mile charge on electric vehicles from April 2028. Environmental groups argue cheap fuel undermines climate goals. Motoring groups say drivers, especially in rural areas, have no alternative. Fuel duty is a major source of revenue, so any long freeze has a large cost to the public finances.
Who it affects: Drivers and hauliers
Many on the left argue repeated freezes have cost billions that could fund public transport, though some worry rises hit low-income rural drivers.
Many on the right back freezes or cuts, arguing high fuel taxes punish drivers, small businesses and rural communities.
Britain is split. Now you decide.
Set fuel duty in the Population Decides Budget and balance revenue and emissions against angry drivers.
Play Population Decides freeCommon questions
How much is fuel duty per litre?
It is 52.95p per litre on petrol and diesel, with VAT charged on top.
Why has fuel duty been frozen?
Governments since 2011 have chosen not to raise it, citing the cost of living for drivers and businesses.
Do electric cars pay fuel duty?
No. A separate pay-per-mile charge for electric cars is planned from April 2028.