Drivers have been handed a mega boost by PM Sir Keir Starmer after he announced that the planned 5p fuel duty rise is to be postponed, in a move Tories termed a “U-Turn”
Hard-up motorists have been handed a serious boost after Sir Keir Starmer confirmed that a planned 5p fuel duty rise is to be postponed until the end of this year.
The Prime Minister announced the move during a lively PMQs and comes as ministers scramble to ease pressure on families who face rising costs and soaring fuel prices due to tensions in the Middle East.
The 5p cut to fuel duty was first introduced in 2022 but had been due to start being phased out from September this year. Under previous plans, the duty would have risen gradually between September and March 2027. Instead, drivers will continue paying the lower rate until at least January in a move expected to save motorists money every time they fill up.
Starmer said the government had acted because families were “fed up of bills going up” and warned instability overseas risked pushing fuel prices even higher in the months ahead.
He said: ““Families across the country are fed up of bills going up every time there’s instability overseas, and that is why we are acting to protect motorists and businesses from further pressure at the pumps.”
The announcement means petrol and diesel prices should avoid an additional rise later this year, offering a bit of much needed relief to millions of drivers already struggling with the cost of living.
As well as extending the freeze for motorists, the government also confirmed a package of support for farmers and the haulage industry.
Duty on red diesel, which is used by farmers and rail freight operators, will be cut from 10.18p to 6.48p per litre until the end of the year.
Hauliers will also get a 12-month holiday on HGV vehicle excise duty, meaning some lorry operators could save hundreds of pounds.
The fuel duty freeze is expected to cost the Treasury hundreds of millions of pounds in lost revenue, but ministers believe the move is necessary to shield households and businesses from rising energy and transport costs.
Tory leader Kemi Badenoch welcomed the decision during clashes in the Commons, jokingly thanking the Prime Minister “for the U-turn”.
She told MPs: “We asked the Prime Minister about fuel duty months ago, so I suppose we should say thank you for the U-turn.
“But why are Labour MPs still voting to ban new British oil and gas licences while families are struggling with rising energy costs?”
But the row quickly descended into a wider argument over oil and gas policy and sanctions linked to Russian fuel imports.
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