TL;DR A planned 5p per litre increase in fuel duty could raise annual fuel costs for motorists if introduced from September. Estimates suggest the average petrol car driver could pay around £78 more per year by 2029, while households with two petrol cars could face an extra £156 annually. At the same time, pump prices have already been rising due to disruption to oil exports in the Middle East, with some retailers increasing prices faster than others. The Government says it is monitoring the situation and wants to ensure drivers receive a fair price at the pumps.
Fuel duty rise could push up family fuel bills
Drivers could face higher motoring costs if the Government proceeds with a planned 5p per litre increase in fuel duty.
Analysis from the Conservatives suggests the change could add around £78 a year to the running costs of a typical petrol car by March 2029. For households with two petrol vehicles, that could mean an extra £156 a year in fuel costs.
The increase would be introduced in stages starting in September, although ministers say the situation is still under review because of rising fuel prices.
Rising fuel prices add to pressure on motorists
Fuel costs have already increased in recent weeks as global oil markets reacted to disruption in the Middle East.
Shipping through the Strait of Hormuz, a key route that carries around 20 per cent of the world’s oil and gas exports, has been heavily affected. The situation has pushed petrol prices to their highest level in around 18 months.
The Government has not confirmed whether the current 5p fuel duty discount, which is due to expire in September, will be extended.
What the fuel duty increase could mean for drivers
Based on current estimates, a petrol car travelling about 7,400 miles per year pays around £495 in fuel duty annually. With the planned increase, that could rise to roughly £573 within three years.
Critics say introducing a tax rise while fuel prices are climbing could add pressure to household budgets. However, the Treasury says it does not recognise the calculations used in the analysis and insists it is working to ensure drivers receive a fair price at the pumps.
Supermarket fuel prices rising at different speeds
Recent analysis suggests some retailers have increased pump prices faster than others since the Middle East crisis began.
Petrol prices at Asda have risen by an average of 10.1p per litre, bringing the average price to around 138.9p per litre. Filling a typical 55-litre tank now costs roughly £5.50 more than before the recent increases.
Diesel prices have also climbed sharply, with average prices rising almost 20p per litre over the past two weeks.
Across major fuel brands, Shell currently has some of the highest average petrol prices at about 144p per litre, while Morrisons is among the cheapest major retailers with prices around 133.7p per litre.
Asda says it remains focused on keeping prices as low as possible for motorists despite rising wholesale fuel costs.
How drivers can reduce fuel costs
Fuel price differences between petrol stations can be significant. Research suggests drivers may save around £10 per tank simply by choosing a cheaper station nearby.
Over the course of a year, switching to pumps that are around 20p per litre cheaper could save motorists close to £200, depending on mileage and fuel use.