The Government has announced a support package for motorists to protect drivers and businesses from rising fuel costs. The targeted package aims to keep taxes down, freeze pump prices and support people with the impact of the ongoing USA/Israel and Iran conflict.
On Wednesday 20 May, the government announced that the 5p cut on fuel duty will be extended for the rest of the year in order to lower the costs for millions of drivers across the UK and ensure that fuel duty on petrol and diesel remains at its lowest rate for over 16 years. By the end of this year the cut will have saved the average driver £120 in total since 2025.
With the ongoing conflict and fuel crisis pushing up costs for hauliers who keep Britain’s shelves stocked, the government is giving them a 12-month road tax holiday – meaning they will pay £1 at renewal. This will save £600 for a typical heavy lorry and £912 for the biggest vehicles on the road.
Farmers, rail freight, and other red diesel users will also see their fuel duty cut by over a third until the end of the year. This is the lowest rate in over 20 years, helping to keep the cost of doing business down at a difficult time when red diesel prices are around 50% more than their pre-crisis levels.