In his first Budget, the Chancellor confirmed that the temporary 5p cut in fuel duty will stay in place beyond its planned end in December. Duty remains at 52.95p a litre on petrol and diesel, and the main rate has now been frozen or cut every year for 15 years.
Under the old plan, 3p would have gone back on from 1 January 2027 and a further 2p from 1 March. With VAT, that would have added about 6p a litre at the pump, or £3.30 every time you fill a 55-litre tank. Those rises will no longer happen before July.
Live on PetrolPrices.co.uk right now
- Average diesel across the stations we track: 198.8p — 1.2p below £2
- Forecourts charging £2 or more for diesel: 1,480 (18.5% of stations reporting diesel)
- Average petrol (E10): 172.8p
- Cheapest diesel in the UK: 105.7p, dearest: 234.9p
Updated 28 Oct 2026, 23:26 from the government Fuel Finder feed. Refreshes every 15 minutes.
What it means for your tank
The Budget doesn't make fuel cheaper today — it stops it getting dearer because of tax. The government's weekly figures for the week of 26 October put diesel at 199.2p a litre and petrol at 174.1p, so a 55-litre fill costs about £109.56 for diesel and £95.76 for petrol.
| Period | Old plan | After the Budget | Saving on a 55-litre tank |
|---|---|---|---|
| Now to 31 December 2026 | 52.95p duty | 52.95p duty | No change |
| January and February 2027 | +3p duty (about +3.6p at the pump) | 52.95p duty | About £1.98 |
| March to July 2027 | +5p duty (about +6p at the pump) | 52.95p duty | About £3.30 |
The Chancellor did not set out in his speech what happens to the cut after July. Why every 1p of duty is worth 1.2p at the pump is explained in how much fuel is taxed in the UK.
How it compares with what drivers asked for
Last week we set out every fuel duty option on the table. The Chancellor chose the most modest form of help.
| Option | Who wanted it | Outcome |
|---|---|---|
| Let the 5p cut end (about +6p a litre) | The previous plan | Not chosen |
| Keep the 5p cut | AA, RAC and others | Chosen — until July 2027 |
| Keep the 5p cut and add a further 5p (about −6p a litre) | AA | Not chosen |
| An extra 10p cut (about −12p a litre) | FairFuelUK | Not chosen |
| Cut VAT on fuel | RAC (as an alternative) | Not chosen |
Reaction: relief, but disappointment
The RAC's senior policy officer Rod Dennis said drivers may be relieved that duty isn't going up, but many will be disappointed the Chancellor didn't go further. He pointed out that nearly two in three regular drivers wanted a cut to fuel duty or VAT, and that the freeze only lasts until next summer.
FairFuelUK, which had called for a 10p cut, welcomed the decision but said “a freeze is not a cut”. Before the Budget, the AA had asked for the 5p cut to be kept and a further 5p taken off, arguing that the Treasury's extra VAT from high prices should pay for it.
Drive for work? Mileage rates are changing too
Ahead of the Budget, the Chancellor said he would lock in the 55p-a-mile tax-free rate for the first 10,000 business miles in a tax year, which rose from 45p in April. The rate for miles beyond 10,000 is due to rise from 25p to 35p. These rates cover your own car used for work. Company car drivers are covered by HMRC's separate advisory fuel rates — see HMRC advisory fuel rates from 1 September.
23 March 2022
The temporary 5p fuel duty cut is introduced.
28 February 2026
The US–Iran conflict begins. Diesel averages 142.38p.
2 October 2026
Diesel hits an all-time high of 200.01p on the RAC's daily measure.
Wednesday 28 October 2026
The Budget extends the 5p cut to July 2027.
1 January and 1 March 2027
The 3p and 2p rises that were due on these dates no longer go ahead.
July 2027
The extended cut is due to end. What follows has not yet been set out.
Prices won't fall because of the Budget
Because duty is unchanged, nothing at the pump should move as a result of today's announcement. Any falls will have to come from wholesale costs — we looked at how much should come off in diesel slips back under £2 — and from retailers passing them on, which the competition watchdog says some are slow to do. See retailers slow to pass on fuel savings.
How to keep paying less
With no extra help from the Budget, the biggest saving is still in where you fill up. The gap between the cheapest and dearest forecourts in the same area is often far bigger than any duty change — see why petrol prices differ in the same town.
Four quick ways to pay less
- Check before you set off. We cover over 8,000 stations from the government Fuel Finder feed, updated every 15 minutes.
- Use the fuel price map to compare the stations around you — supermarkets are usually the cheapest.
- Save your regular stations in favourites to see at a glance which one is cheapest today.
- Work out what a trip will really cost with the journey cost calculator, and use the journey planner to find the best-value stop on your route.
Weekly averages are from the government's road fuel price statistics for the week commencing 26 October 2026. Record and pre-conflict prices are from RAC Fuel Watch. Tank figures are based on a 55-litre tank and include VAT. Live figures come from the government Fuel Finder feed and refresh every 15 minutes.