Rachel Reeves 'will shelve 5p fuel duty hike' as pump prices head for new high since Middle East crisis erupted

By JAMES TAPSFIELD, UK POLITICAL EDITOR Published: 12:18, 18 May 2026 | Updated: 12:26, 18 May 2026 Rachel Reeves is poised to drop plans to hike fuel duty as Brits brace for more 'Trumpflation' pain. The Chancellor could announce as soon as Thursday that the increase slated for September is not happening.  Pressure has been mounting on the Government to say how it will help families with the looming impact from the Middle East crisis. Brent Crude has surged again to around $110 a barrel after Donald Trump renewed his threats against Iran.  The Strait of Hormuz - through which around a fifth of global oil supplies normally pass - remains effectively shut. The RAC said the average petrol price had crept up to 158.24p today, with diesel 186.15p. The levels are expected to reach new highs since the crisis erupted later this week, as oil costs are fed through to drivers.  Your browser does not support iframes. Your browser does not support iframes. Chancellor Rachel Reeves could announce as soon as Thursday that the increase slated for September is not happening The Treasury declined to comment on speculation about the announcement. Ms Reeves was in Paris today for meetings with G7 counterparts, as the IMF upgraded dismal forecasts for the UK economy - but warned of an inflation spike. The Chancellor was pictured standing some distance from US Treasury Secretary Scott Bessent, with whom she had a bruising confrontation in Washington recently.   Ministers have been stressing they are focused on the cost of living timebomb despite Labour descending deeper into civil war. A crucial Commons by-election battle has officially kicked off with Andy Burnham's allies accusing rivals of sabotage. Supporters of the Greater Manchester mayor lashed out after leadership contender Wes Streeting voiced support for rejoining the EU. That highlighted Mr Burnham's own strident views on reversing Brexit – seen as deeply unhelpful when he is wrestling Reform in the Eurosceptic seat of Makerfield. Victory would be a springboard to taking over from Keir Starmer. The spat came amid rising anxiety in Labour ranks at the consequences if the contest – likely to be on June 18 – is lost. Even fans of Mr Burnham say his chances of success could be worse than 50-50, with polls having consistently shown Nigel Farage's outfit on track to win. Sir Keir visited Labour HQ this morning to thank staff for their hard work, insisting he would 'get on with the job'. He pledged to support whatever candidate is fighting Reform at the by-election.   Deputy PM David Lammy acknowledged that the 'internecine warfare' after disastrous local elections was a 'spectacular own goal'.  'Some colleagues are lighting the match and standing in the petrol,' he warned, hinting that a general election could be inevitable if the party does not pull together. But Mr Lammy refused five times to say whether he personally wanted to rejoin the EU.   Ms Reeves was in Paris today for meetings with G7 counterparts, as the IMF upgraded dismal forecasts for the UK economy - but warned of an inflation spike Backbencher Jonathan Hinder said the call to unwind Brexit showed a 'staggering level of out of touch'. One despairing minister told the Daily Mail: 'Day one has gone well but it'll be downhill from here on in.'  Another senior Labour source said the complaint amounted to 'Wes is doing politics and I'm upset about it'. 'Welcome to Westminster, Andy. It's not all free money and buses with bees on,' they added. A former minister said: 'Burnham has the political sense of a gnat.'  Despite the race to replace him being in full swing, Sir Keir is not expected to concede he will have to quit or set out a timetable. Instead, the premier will wait to see whether Mr Burnham can get back into the Commons.  No comments have so far been submitted. Why not be the first to send us your thoughts, or debate this issue live on our message boards. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook. You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy.