"Labour has abandoned plans to raise fuel duty in September, in a swift policy reversal driven by mounting pressure from motorists and renewed volatility in global energy markets. The decision means the long-running 5p-per-litre fuel duty freeze will be extended into 2027, a move likely to be welcomed by drivers already facing sustained pressure at the pumps following recent spikes in oil prices linked to instability in the Middle East."
"The Treasury had previously signalled in the Autumn Budget that the temporary freeze would be wound down, opening the door to a return to inflation-linked increases after more than a decade of repeated extensions. That approach has now been dropped. Instead, the Government said it would continue to shield households and businesses from higher transport costs, arguing that global energy shocks risk feeding directly into domestic inflation."
"Prime Minister Keir Starmer said the move was designed to "back drivers" and protect working households from international price swings, adding that fuel costs remain a "direct transmission channel" from global instability into the UK economy. Starmer said: "I can announce that we are backing drivers by extending fuel duty for the rest of the year. This is possible because of the decisions taken by the Chancellor, making us the fastest-growing economy in the G7.""
""I know many are feeling the pressure of energy and fuel costs, and are worried about how the conflict in Iran will affect their finances. Because when global events drive up prices, it's working people who feel it first. "That's why this Government is stepping in to keep fuel costs down for millions of drivers and putting money back in the pockets of working people.""
Labour abandoned plans to raise fuel duty in September, extending the existing 5p-per-litre fuel duty freeze into 2027. The change follows pressure from motorists and renewed volatility in global energy markets, including recent oil price spikes tied to instability in the Middle East. The Treasury previously indicated the freeze would end and inflation-linked increases would resume, but that approach was reversed. The Government said it will continue shielding households and businesses from higher transport costs because global energy shocks could feed into domestic inflation. The Prime Minister said the policy is designed to back drivers and protect working households from international price swings, describing fuel costs as a direct transmission channel from global instability into the UK economy.
Read at London Business News | Londonlovesbusiness.com
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