Guide
Fuel duty in 2026 and 2027
The 5p cut holds until the end of 2026, then unwinds in two steps through early 2027. Here is what that adds to a litre, what it means per tank, and how to soften the blow.
Fuel duty is the slice of every litre that goes to the Treasury, and it has been held five pence below its old level since March 2022. That temporary cut is now on a timetable to disappear. If you drive, it is worth knowing what is changing, when, and roughly what it will cost you, because the pump will not explain it for you.
What is changing, and when
Fuel duty on petrol and diesel currently sits at 52.95p a litre, which reflects the 5p cut. The cut is confirmed to stay in place until 31 December 2026. After that, the plan is to remove it in two steps.
The planned timetable
- Now until 31 December 2026: duty stays at 52.95p a litre, with the full 5p cut in place.
- From 1 January 2027: duty rises to 55.95p a litre, removing 2p of the cut.
- From 1 March 2027: duty rises to 57.95p a litre, removing the cut in full and returning to the pre 2022 level.
Figures from the government's amended fuel duty rates for 2026 to 2027. Plans announced at a Budget can change.
What it actually adds at the pump
Duty is charged before VAT, and VAT at twenty percent is then added on top of it, so every penny of duty becomes about 1.2p by the time it reaches you. That means the January step of 2p on duty is close to 2.4p a litre at the pump, and the full 5p unwind by March 2027 works out at around 6p a litre once VAT is counted, assuming retailers pass it straight through.
On a 55 litre tank, a 6p a litre rise is a little over three pounds every time you fill up. For a driver covering an average mileage that adds up to somewhere around fifty to seventy pounds across a year. Not ruinous, but not nothing, and it lands on top of whatever the oil price is doing at the time.
Two important caveats
Plans can change. Fuel duty has been frozen or cut at successive Budgets for well over a decade, and the 5p cut itself has already been extended more than once. A future Budget could soften, delay or scrap these rises. Treat the timetable as the current plan, not a certainty.
Retailers control the timing. A duty rise sets the floor, but forecourts decide when and how to pass it on. In practice prices tend to rise quickly when costs go up and fall slowly when they come down, so do not expect the increase to arrive gently. Our guide to the best time to buy fuel explains that pattern and how to sit on the right side of it.
How to soften the blow
You cannot vote on fuel duty at the pump, but you can control the other several pence a litre that separates a cheap forecourt from an expensive one, and that gap is larger than the whole January step. Three practical moves. Fill up in the days before the 1 March 2027 change while the lower duty is still in the price. Keep buying where competition is fiercest, usually supermarkets and busy routes rather than motorways. And let the timing come to you by setting a free price alert so you know when your local price moves. To see who is cheapest near you right now, put your postcode into the price finder.
Common questions
Is fuel duty going up in 2027?
Yes, under the current plan. The 5p cut holds until 31 December 2026. From 1 January 2027 duty rises by 2p to 55.95p a litre, and from 1 March 2027 by a further 3p to 57.95p, removing the cut in full. Budget plans can change, so this is the current timetable rather than a certainty.
How much will the fuel duty change add to a litre?
Because VAT is added on top of duty, the January 2027 step of 2p on duty is about 2.4p a litre at the pump, and the full unwind by March 2027 is around 6p a litre, if retailers pass it straight through. On a 55 litre tank that is a little over three pounds a fill.
What is fuel duty in 2026?
Fuel duty on petrol and diesel is 52.95p a litre through to 31 December 2026, reflecting the 5p cut introduced in March 2022. VAT at twenty percent is then charged on top of both the fuel and the duty.
How can I avoid paying more when duty rises?
You cannot change the duty, but you can fill up before the 1 March 2027 rise, buy at competitive forecourts rather than motorways, and set a free price alert so you know when your local price moves. The gap between a cheap and an expensive forecourt is often larger than the duty change itself.