Story perspectives

UK Extends 5p Fuel Duty, Freezes HGV Tax

5/21/2026

Summary

Story summary

The government will keep the 5-pence fuel duty cut until 31 December 2026, linking it to a £3 billion premium for fuel costs since the Iran-Hormuz conflict began on 28 February.
Red-diesel duty drops from 10.18 p to 6.48 p per litre on 15 June.
Heavy-goods-vehicle road tax will be frozen at £1 for a year, saving hauliers £600.
Treasury estimates the package will cost £455 million this tax year, with road-tax holiday cutting renewal fees by £600-£912.

History

Historical Context

The 2026 extension of the fuel duty cut follows a pattern of temporary relief that began with the Finance Act 1910’s first petrol duty and the 1993 fuel-price escalator halted after 2000 protests. In 2014-15 fuel duty raised £27.1 billion, showing its fiscal weight. The current cut aims to ease household costs.

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Story summary

The government will keep the 5-pence fuel duty cut until 31 December 2026, linking it to a £3 billion premium for fuel costs since the Iran-Hormuz conflict began on 28 February.
Red-diesel duty drops from 10.18 p to 6.48 p per litre on 15 June.
Heavy-goods-vehicle road tax will be frozen at £1 for a year, saving hauliers £600.
Treasury estimates the package will cost £455 million this tax year, with road-tax holiday cutting renewal fees by £600-£912.

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