Experts have warned that fuel duty taxes could be hiked in the coming months by Chancellor Rachel Reeves, despite policies remaining in place for the coming year.
Fuel duty is paid by all petrol and diesel drivers when they visit fuel stations, with the tax expected to raise £24.4billion in 2025-26.
This represents two per cent of all receipts the Government brings in, although the future of fuel duty remains uncertain as more motorists switch to electric vehicles.
Since EV owners do not buy fuel, receipts from fuel duty are expected to plummet in the coming years, with some experts estimating that it could leave the Government with a £35billion black hole.
Do you have a story you'd like to share? Get in touch by emailingmotoring@gbnews.uk
Whitehall sources have told FairFuelUK that the Treasury could hike fuel duty by 10p in the Autumn Budget
PA
According to FairFuelUK, Whitehall sources have suggested that the Chancellor could end the freeze and even hike prices by 10p, five pence higher than the standard 57.95p rate.
It comes after Reeves, who represents Leeds West and Pudsey for Labour, extended the fuel duty freeze until March 2026, in a move which shocked many industry experts.
In a statement to GB News following this week's spending review, a spokesperson for HM Treasury said: "We extended the fuel duty cut this year, saving drivers £3billion, and increased the National Living Wage giving a pay boost of up to £1,400 a year for millions of eligible workers.
"Changes to tax and spend policy are not the only ways of strengthening public finances, as seen with our planning reforms, which are expected to grow the economy by £6.8billion and cut borrowing by £3.4billion."
Petrol and diesel prices may rise in the coming months if fuel duty hikes are introduced
PAThe Chancellor always keeps taxes under review and makes tax policy decisions at a future fiscal event, with the next scheduled event taking place in the Autumn.
Speaking to GB News, Howard Cox, founder of FairfuelUK, predicted that Chancellor Rachel Reeves would need to present a "stringent, tax-heavy Budget in the Autumn".
He said: "Thanks largely to FairFuelUK, fuel duty has been frozen for 14 years and remains at its current level, which includes a temporary 5p cut.
"Some armchair experts who despise supporting the UK's 37 million drivers argue that restoring or unfreezing fuel duty could generate more than £3billion a year. Utter nonsense!"
LATEST DEVELOPMENTS:
The "regressive" tax, as Cox described it, has been frozen at 57.95p since 2011, before being cut by five pence per litre by former Chancellor Rishi Sunak in 2022 after the Russian invasion of Ukraine forced global oil prices to spiral.
He added that any fuel duty hike would not be welcomed by drivers, and could likely impact low-income families and businesses the most.
While petrol and diesel prices are approaching their lowest price for almost four years, global instability in the Middle East could force fuel costs even higher, despite the fuel duty freeze.
Cox added: "The left, and, of course, the well-funded, environmentally conscious Greens, will be salivating with delight at the thought of an end to a decade-and-a-half freeze on fuel duty.
"I will fight hard and push Rachel to implement a sensible fiscal policy by incentivising lower transport costs through keeping fuel duty frozen for the duration of this Parliament."
Cox also aims to ensure the PumpWatch tool is fully operational as soon as possible to help motorists save on petrol and diesel, and prevent "opportunistic profiteering at the pumps".
The Government's "Fuel Finder" tool is expected to launch before the end of the year and will display live data from filling stations around the UK.
Forecasts suggest the average driver could save between one and six pence per litre if filling stations are encouraged to slash prices.
Most Read
