Fuel duty on petrol and diesel goes up from 52.95p to 60.59p a litre on 1 July 2027. With VAT on top, that adds 9.17p a litre, or £5.04 on a 55-litre tank. A car doing the average 7,100 miles a year at 40 mpg pays about £74 a year more.
UK average, week of 26 October 2026. Only used for the tax share below.
Each litre costs 7.64p more in duty plus 1.53p VAT on that duty. Pump prices also move with oil prices, the exchange rate and retailer margins, so this shows the duty part only. The July 2027 tax share assumes the rest of the price stays where it is today.
Extra cost a year from 1 July 2027, by miles and mpg
Petrol and diesel pay the same duty rate, so these figures work for both. Each litre costs 9.17p more including VAT.
| Miles a year | 30 mpg | 40 mpg | 50 mpg | 60 mpg |
|---|---|---|---|---|
| 5,000 | £69 | £52 | £42 | £35 |
| 7,100 (average car) | £99 | £74 | £59 | £49 |
| 10,000 | £139 | £104 | £83 | £69 |
| 15,000 | £208 | £156 | £125 | £104 |
Average car mileage: Department for Transport National Travel Survey, table NTS0901, all cars in England, 2025. Rounded to the nearest pound.
This calculator gives an estimate, not financial advice. For decisions about your own money, check with a qualified adviser or HMRC.
The Budget changes were announced on 28 October 2026. Some details are still being confirmed and may change before they take effect, and we update this page as they do.
What's happening to fuel duty, and when
- Now until 30 June 2027: petrol and diesel duty stays at 52.95p a litre. This is the 5p cut first made in March 2022, which the Budget extended. It replaces the rise that had been due to start on 1 January 2027, so nothing changes at the pump from duty in January.
- From 1 July 2027: duty goes back to the 57.95p rate that applied before the cut, and is then increased in line with RPI inflation, giving 60.59p a litre. That is 7.64p more before VAT.
VAT at 20% is charged on the whole pump price, duty included, so the duty rise costs drivers 9.17p a litre once VAT is added. The legislation takes effect from 1 January 2027.
Source: Budget 2026, Overview of Tax Legislation and Rates, paragraph 2.18 and Annex A (Fuel Duty table, columns for 15 June 2026 to 30 June 2027 and from 1 July 2027).
How much will petrol go up in July 2027?
The duty part of the price goes up by 9.17p a litre including VAT, for petrol and diesel alike. Duty is part of the pump price, so the rise feeds into it, but the price you pay on 1 July 2027 also depends on oil prices, the pound against the dollar and how much forecourts charge on top. Those move week to week, so we don't forecast the pump price itself.
For context, the UK average in the week of 26 October 2026 was 174.07p a litre for petrol and 199.22p for diesel (Department for Energy Security and Net Zero, weekly road fuel prices). Of that, duty and VAT made up 81.96p of a litre of petrol and 86.15p of a litre of diesel.
Red diesel
The rebated rate for red diesel (marked gas oil) also stays low until 30 June 2027, at 6.48p a litre. From 1 July 2027 it rises to 11.65p, which is 5.17p a litre more before VAT. A farm using 10,000 litres a year would pay £517 more in duty.
Since April 2022 only a limited list of uses can run on red diesel, including agriculture, horticulture, fish farming, forestry and rail. The same Budget measure covers rebated biodiesel and bioblend and kerosene used in excepted machines (other than for heating).
Electric car drivers
Electricity isn't subject to fuel duty, so the July 2027 rise doesn't change what it costs to charge an electric car. A plug-in hybrid pays the extra duty only on the petrol or diesel it burns. To compare what an EV costs to run against petrol or diesel at home or rapid charging prices, use the fuel cost calculator.
Businesses and mileage claims
The HMRC approved mileage rate for employees using their own car is 55p a mile for the first 10,000 business miles in 2026/27 and 25p after that. It's a fixed rate and isn't tied to fuel duty, so the July rise doesn't change it on its own. Work out a claim with the mileage allowance calculator.
Company car drivers reimbursed at HMRC's advisory fuel rates are on a different system. HMRC reviews those rates every quarter, on 1 March, 1 June, 1 September and 1 December, using current pump prices, so the first review after the duty rise is 1 September 2027.
If your business is VAT-registered and reclaims the VAT on its fuel, the extra cost is the 7.64p duty rise per litre without the VAT on top.
How the calculator works it out
(or miles × 1.609344 × L/100km ÷ 100)
Extra a year = litres × (60.59p − 52.95p) × 1.2
Extra per tank = tank litres × 9.17p
A UK gallon is 4.54609 litres. If you enter miles a week, the calculator multiplies by the number of weeks you drive. The monthly figure is the yearly figure divided by 12.
Worked examples
Each example below was run through the calculator above with the inputs shown. They count the duty rise and the VAT on it only, and assume the rest of the pump price stays where it is.
Commuter: 250 miles a week, 46 weeks a year, 50 mpg
Choose "a week", enter 250 miles and 46 weeks to leave out holidays. That is 1,046 litres a year, so the rise costs £95.86 a year, or £7.99 a month. Petrol and diesel pay the same duty, so the answer is the same for either.
High mileage: 20,000 miles a year at 35 mpg
Someone driving for work in their own car uses 2,598 litres a year, and the rise adds £238.16 a year (£19.85 a month). A 60-litre fill costs £5.50 more. If an employer pays the HMRC approved mileage rate, that rate is fixed for the tax year and does not move with fuel duty.
Economy in litres per 100 km: 12,000 miles at 6.5 L/100km
Switch the unit to L/100km if that is what your dashboard shows. 12,000 miles at 6.5 L/100km is 1,255 litres a year, so the extra cost is £115.08 a year and £4.58 on a 50-litre tank.
Rules that change the answer
Two steps on one date
On 1 July 2027 the 5p cut from March 2022 ends and the rate is also uprated by RPI inflation, both on the same day. That is why the new rate of 60.59p is higher than the old pre-cut rate, not equal to it. Budget 2026 also cancelled the rise that had been due on 1 January 2027, though the law making that change takes effect from that date (Budget 2026 OOTLAR, paragraph 2.18, checked 30 October 2026).
Same rate for petrol, diesel and road biofuels
Unleaded petrol, diesel, bioethanol and biodiesel all pay 52.95p a litre until 30 June 2027 and 60.59p from 1 July 2027. Road fuel gases such as LPG pay per kilogram and rise on the same date at different rates (Budget 2026 OOTLAR, Annex A, checked 30 October 2026). This calculator covers litre-priced fuels only.
Common mistakes
Expecting prices to jump by exactly 9.17p. That is the tax part. Retailers may pass it on gradually, and oil prices and the exchange rate can push the pump price either way in the same week.
Using a US mpg figure. US reviews quote miles per US gallon, which is smaller than the UK gallon this calculator uses, so a US figure for the same car looks worse and overstates the cost. Use the UK figure or your own trip computer reading.
Using official economy figures. Laboratory test figures are usually better than real-world driving, especially on short trips and in winter. Your own average from fill-ups gives a more honest answer.
How this calculator works: it turns your miles and fuel economy into litres a year and multiplies by the duty rise plus VAT, as set out in the formula above. Duty rates come from the Budget 2026 documents, checked on 30 October 2026. Every source is listed on our methodology page.