Autumn budget: 5p fuel duty cut extended to July 2027

Fleet operators and drivers have been given further relief after the Chancellor delayed a planned 5p-per-litre fuel duty increase until July 2027.

Announced in the Autumn Budget on 28 October, the extension comes amid soaring petrol and diesel prices driven by the conflict in the Middle East. Average UK diesel prices exceeded £2 per litre for the first time in early October, putting further pressure on fleet operating costs.

Chancellor John Healey said the Government was extending fuel duty tax relief through the winter and spring to help motorists manage higher costs.

However, motoring organisations warned the move would only postpone the impact of a future increase. The AA estimates the delayed rise could add £3.30 to the cost of filling a typical tank.

For fleet managers, the extension offers some short-term certainty when budgeting for fuel, but continued price volatility remains a significant challenge. With fuel a major expense for van and truck operators, businesses will need to keep monitoring consumption, reviewing fuel efficiency and managing costs.

While the freeze avoids an immediate increase, the industry continues to face uncertainty over fuel prices and the longer-term direction of fuel duty.

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