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UK Freezes Fuel Duty, Ofgem Caps Rise, £3.6bn Shortfall

5/19/2026

Summary

Story summary

The UK government will freeze fuel duty, postponing the 5-pence per litre increase planned for September 2026.
Office of Gas and Electricity Markets (Ofgem) expects the price-cap to rise to £1,843 per year from £1,641 when revised on July 1.
The Treasury warned the freeze could cause a £3.6 billion annual shortfall despite £24 billion fuel-duty revenue last year.
The government earmarked £50 million to subsidise heating oil for rural households, especially in Northern Ireland.

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Story summary

The UK government will freeze fuel duty, postponing the 5-pence per litre increase planned for September 2026.
Office of Gas and Electricity Markets (Ofgem) expects the price-cap to rise to £1,843 per year from £1,641 when revised on July 1.
The Treasury warned the freeze could cause a £3.6 billion annual shortfall despite £24 billion fuel-duty revenue last year.
The government earmarked £50 million to subsidise heating oil for rural households, especially in Northern Ireland.