Rachel Reeves is reportedly having second thoughts about the planned UK fuel duty hike set for September. It’s a move that makes sense when you look at the chaos in the Middle East. With oil prices jumping over the $100 mark, petrol stations are already prepping for the worst. We’re looking at prices potentially hitting 150p per litre, a figure that would definitely reignite the cost-of-living headache for most families.
Will the Treasury actually blink? Right now, a temporary 5p cut is keeping things somewhat stable, but that’s legally supposed to vanish in a few months. If the government doesn't step in, drivers will get hit from both sides: global oil spikes and higher taxes at home. We've seen these cycles before, and they rarely end well for the average commuter.
Downing Street is being vague, of course, saying they keep all taxes under review. Meanwhile, the RAC is sounding the alarm. They reckon petrol will hit 140p within days.
If the Strait of Hormuz, where about 20% of the world’s oil travels, stays under threat, we might see diesel soaring toward 180p. That’s a three-year high we could all do without. Honestly, it’s a bit of a nightmare for anyone relying on their car for work.
There is plenty of political noise too. Kemi Badenoch is already pushing for a vote to keep the duty low, and the pressure on Sir Keir Starmer is mounting.
If you’re worried about the long-term cost of filling up, it might be worth checking out some alternatives. We’ve put together a list of the most affordable electric cars for 2026 that might help you dodge these forecourt dramas entirely.
For now, we’re all just waiting on the Chancellor. She’s meeting with retailers this week to make sure they aren't taking the mick with their pricing data. Whether she actually cancels the UK fuel duty hike remains to be seen, but for the sake of our wallets, let’s hope she does.