Government gives key petrol and diesel price update 'cancelling increase'

The Government has issued an update on measures to tackle soaring petrol and diesel prices following the ongoing Middle East crisis. Since US and Israeli strikes on Iran at the end of February, fuel costs across the UK have skyrocketed. Drivers had been enjoying relatively steady prices at the start of the year, with both petrol and diesel hovering between 130p and 140p per litre. However, that stability evaporated at the beginning of March as surging oil prices sent costs spiralling upwards. Concerns have gripped oil markets over the effective blockage of a crucial shipping route, the Strait of Hormuz, with no resolution in sight as the US and Iran have yet to reach a peace deal, despite an existing ceasefire. The cost of a barrel of Brent Crude stood at approximately $114 on Wednesday morning, a sharp rise from around $70 before hostilities erupted. Petrol prices now range between 150p and 160p, while diesel sits between 180p and 190p at most forecourts nationwide. This has significantly increased the expense of every tank for British motorists and sparked demands for Government action, particularly given that tax comprises a considerable portion of pump prices. Raising the issue in Parliament, Gregory Stafford, Conservative MP for Farnham and Bordon, asked: "To ask the Chancellor of the Exchequer, whether she (a) is taking steps to reduce fuel duty and (b) has considered halving fuel duty to help reduce the cost of living." The reply came on Tuesday from Exchequer Secretary Dan Tomlinson, MP for Chipping Barnet, who said: "The Government has already taken action on fuel affordability at the pump. At Budget 2025, the Government extended the 5p-per-litre cut for a further five months, until the end of August this year. "The Government has also cancelled the increase in line with inflation for 2026/27. Instead, rates will only gradually return to early 2022 levels by March 2027. Since Autumn Budget 2024, the Government's decisions to freeze fuel duty will save the average motorist over £90. "Fuel duty raises approximately £24 billion each year, where this revenue helps fund the vital public services and infrastructure that people across the UK expect. As with all taxes, the Government keeps fuel duty under review."