Budget 2025 - Fuel duty

26th November 2025

The temporary 5 pence-per-litre cut in fuel duty (originally introduced in 2022) has been extended until August 2026.

After August 2026, the reduction will be reversed gradually — the duty will return to its pre-cut level over a series of phased increases throughout 2026-27.

The Budget also promises to deliver £89 in estimated savings on fuel costs for households next year, compared with previously expected fuel duty rises.