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Budget confirms fuel duty freeze extension – but extra 5p discount to end soon

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The fuel duty freeze that has been in place since 2010-11 will continue, Chancellor of the Exchequer Rachel Reeves has confirmed in today’s Budget.

However, the extra 5p reduction that was introduced during the Covid-19 pandemic has only been extended until September 2026, after which it will be gradually removed by March 2027.

The biggest motoring news from the Budget was the introduction of a new 3p-per-mile tax for EVs, and 1.5p-per-mile for plug-in hybrids, from April 2028, but this has been confirmed as only applying to cars rather than commercial vehicles.

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