Planned fuel duty increase delayed

A planned 1p increase in fuel duty is being paused, prime minister Sir Keir Starmer has announced.

In last year’s Budget, chancellor Rachel Reeves confirmed fuel duty would be frozen at its current rate until September.

Over the following few months, it was set to gradually return to March 2022 levels, starting with a 1p increase on 1 September.

But the US-Israel war with Iran has changed the economic landscape considerably, pushing up oil prices past $111 a barrel.

Government aims to keep costs down for motorists

When oil prices go up, so too does the cost of filling up your car.

So the government is taking action by extending the 5p cut on fuel duty for the rest of the year.

“I know many are feeling the pressure of energy and fuel costs and are worried about how the conflict in Iran will affect their finances,” the prime minister said. 

“When global events drive up prices, it’s working people who feel it first. 

“That’s why this government is stepping in to keep fuel costs down for millions of drivers and putting money back in the pockets of working people.”

Average petrol prices at highest point since Iran war began

The government’s announcement comes shortly after the RAC confirmed that a litre of petrol now costs an average of 158.52p.

That means average petrol prices are at their highest point since the war in Iran started in February.

Simon Williams, head of policy at the RAC, described this as “bad news for drivers ahead of the bank holiday”.

What can I do to save money behind the wheel?

When prices are going up, it pays to be smart about how you drive, so you can make your money go further every time you hit the road.

Shop around for the best fuel prices

You can get real-time fuel prices on platforms including:

• Google Maps
• Confused.com
• DriveScore
• Fuel Finder UK
• Fuel Spy
• MotorMouth
• PetrolPrices.com
• RAC Fuel Watch 

So instead of taking the chance of being overcharged, you can find the cheapest petrol and diesel in your area quickly and easily.

Learn fuel-efficient driving techniques

Your driving style makes a big difference to how much fuel you use.

So it’s worth taking steps to reduce fuel consumption, such as:

• accelerating gently
• braking gradually
• driving in the correct gear

Read our blog on 50 easy ways to cut the cost of driving for more money-saving tips.