Labour under pressure to make fuel duty change as petrol and diesel prices near record highs

fwstaff

Sep 16, 2026 - 11:10

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Labour under pressure to make fuel duty change as petrol and diesel prices near record highs

Experts are calling on the Government to urgently act to protect motorists from soaring petrol and diesel prices, which have reached costs not seen in around four years.

Fresh data from RAC Fuel Watch shows that drivers are paying an average of 170.54p per litre for petrol and 192.86p for diesel.

Prices continue to rise as instability in the Middle East continues, impacting the global cost of oil, which has a knock-on effect on forecourts around the world.

The latest research proves that both petrol and diesel have hit a new record high since the start of the Iran war (February 28), with experts warning that prices are increasing by 1p every day.

Average costs currently seen at the forecourts are at the highest level since July and August 2022, with diesel only 7p away from being the most expensive price ever recorded in the UK.

At the peak, drivers were paying around 191p per litre for petrol and just shy of £2 for diesel in the months following Russia's invasion of Ukraine.

With prices rising at an average of 1.18p per day for diesel, diesel car and van owners could be facing the highest costs ever.

Simon Williams, head of policy at the RAC, said prices "look set to keep on rising" as the cost of a barrel of oil continues to trade at above $100 (£74.23).

Petrol prices and Chancellor John Healey

He added: "Since the start of this month, the cost of filling a family car has already risen by almost £5, to £94 for petrol and £106 for diesel.

"So the pressure on the Chancellor to act to support households, so many of whom are dependent on the car, is building."

Under former Prime Minister Sir Keir Starmer, the Government announced that it would extend the 5p cut on fuel duty until the end of 2026.

This was first introduced in 2022 to combat the massive price hikes following the outbreak of war in Ukraine and has been extended annually since.

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The Government said it would phase out the fuel duty cut gradually in September and December this year, before returning to pre-2022 levels in March 2027.

This was axed in response to the Iran war and the rising cost of fuel, although it is expected to rise by 3p in January, potentially piling more misery on drivers.

"Fuel duty is set to start rising from January but as we've said previously, there is a strong argument for leaving it at its current level, at least until the end of the Parliament," Mr Williams said.

This was echoed by Steve Gooding, director of the RAC Foundation, who said: "The Government can't end the war, but it can recognise the financial hit to drivers and businesses caused by surging petrol and diesel prices. Surely the Chancellor is considering a cut in fuel duty at the budget to reverse this hike in the cost of living?"