Treasury written question – answered at on 26 March 2026.
Wendy Morton
Shadow Minister (Foreign, Commonwealth and Development Office)
To ask the Chancellor of the exchequer, with reference to the Office for Budget Responsibility’s Economic and Fiscal Outlook published in March 2026, what estimate she has made of the additional annual cost to the average UK motorist as a result of the planned staged increases in fuel duty between September 2026 and March 2027; and what assessment she has made of the potential impact of those increases on household finances.
Wendy Morton
Shadow Minister (Foreign, Commonwealth and Development Office)
To ask the Chancellor of the exchequer, what assessment she has made of the potential combined impact of the proposed increase in fuel duty and the recent rise in global oil prices on the price of petrol and diesel in the next 12 months.
Wendy Morton
Shadow Minister (Foreign, Commonwealth and Development Office)
To ask the Chancellor of the exchequer, in reference to the Office for Budget Responsibility’s Economic and Fiscal Outlook published in March 2026, what assessment she has made of the potential impact of planned fuel duty increases on households in rural and car-dependent areas; and what modelling the Treasury has undertaken on the additional commuting costs faced by motorists in those areas during a period of rising global fuel prices.
Dan Tomlinson
The Exchequer Secretary
The Chancellor considers a wide range of impacts when taking decisions on tax policy. At Budget 2025, the Government announced that the 5p cut in fuel duty would be extended until the end of August 2026, with rates then gradually returning to March 2022 levels by March 2027. The planned increase in line with inflation for 2026/27 will also not take place, with RPI uprating resuming from 2027/28 onwards.
Since Autumn Budget 2024, the Government's decisions to freeze fuel duty will save the average motorist over £90 – or 8-11 pence per litre.
The Government has published Tax Impact and Information Notes (TIINs) assessing the impacts of the 2026/27 fuel duty rates, which can be found at GOV.UK:
The Rural Fuel Duty Relief Scheme provides a 5p reduction to motorists buying fuel in certain areas. The areas included in the scheme demonstrate certain characteristics such as: pump prices much higher than the UK average; remoteness leading to high fuel transport costs from refinery to filling station, and; relatively low sales meaning that retailers cannot benefit from bulk discounts.
As the Chancellor has set out, a rapid de-escalation in the Middle East remains the best way to keep prices affordable at the pump. As with all taxes, the Government keeps fuel duty under review.
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The chancellor of the exchequer is the government's chief financial minister and as such is responsible for raising government revenue through taxation or borrowing and for controlling overall government spending.
The chancellor's plans for the economy are delivered to the House of Commons every year in the Budget speech.
The chancellor is the most senior figure at the Treasury, even though the prime minister holds an additional title of 'First Lord of the Treasury'. He normally resides at Number 11 Downing Street.
The Chancellor - also known as "Chancellor of the Exchequer" is responsible as a Minister for the treasury, and for the country's economy. For Example, the Chancellor set taxes and tax rates. The Chancellor is the only MP allowed to drink Alcohol in the House of Commons; s/he is permitted an alcoholic drink while delivering the budget.
