Certain motorists will be facing new costs from today after the Government announced a raft of changes to fuel duty rules.
Last month, Prime Minister Sir Keir Starmer and Chancellor Rachel Reeves announced a number of measures to protect motorists from huge fuel price hikes seen since the start of the Iran war.
This included extending the 5p per litre fuel duty cut until the end of the year, which was previously going to be phased out starting in September this year.
Some of the fuel changes have been extended until December 31, 2026, while other measures will be introduced from today (June 15, 2026) until the end of the year.
This includes a further reduction to the rebated rate for gas oil (red diesel), biodiesel and bioblend by 3.7p per litre.
New rules will impact:
- Marked gas oil - 6.48p
- Kerosene to be used as fuel for an excepted machine (other than for heating) - 6.48p
- Biodiesel for use in an excepted machine - 6.48p
- Gas oil bio blend for use in an excepted machine - 6.48p
Red diesel is a standard form of fuel that has been dyed red to indicate that it is taxed at a lower rate, although its use is restricted to certain vehicles only.
New red diesel fuel rates have been introduced today
| HMRC/PAHM Revenue and Customs outlines that red diesel can be used by agricultural vehicles, special vehicles, mowing vehicles and unlicensed vehicles.
While a range of vehicles are included, they must be used for qualifying purposes, with drivers required to check that their vehicle is entitled to use the fuel.
Documents from HMRC state that the legislative default will see rates return to their previous trajectory from January 1, 2027.
However, the Government will confirm final rates at the upcoming Autumn Budget 2026, which is expected to take place in October or November later this year.
LATEST DEVELOPMENTS
Labour recently announced a fuel duty cut for red diesel | X/WMPTRAFFICFuel duty rates from January 1, 2027
Light oils
Unleaded petrol - 55.95p
Light oil (other than unleaded petrol or aviation gasoline) - 65.67p
Aviation gasoline (Avgas) - 37.43p
Light oil delivered to an approved person for use as furnace fuel - 10.33p
Heavy oils
Heavy oil (diesel) - 55.95p
Marked gas oil - 10.76p
Fuel oil - 10.33p
Heavy oil other than fuel oil, gas oil or kerosene used as fuel - 10.33p
Kerosene to be used as fuel for an excepted machine (other than for heating) - 10.76p
There are estimated to be tens of thousands of Liquefied Petroleum Gas vehicles in the UK
| REUTERSBiofuels
Bioethanol - 55.95p
Biodiesel - 55.95p
Biodiesel for use in an excepted machine - 1-0.76p
Gas oil bio blend for use in an excepted machine - 10.76p
Road fuel gases
Road fuel natural gas, including biogas - 23.85p
Liquefied Petroleum Gas (LPG) - 30.52p
Other fuel
Aqua-methanol - 7.63p