Fuel duty stays at 52.95p a litre on petrol and diesel until 30 June 2027. On 1 July 2027 it goes up to 60.59p. With VAT on top, that adds 9.17p to every litre: about £5.04 on a 55-litre tank, or £73.98 a year for a 40 mpg car driven the average 7,100 miles.
The rises that had been due on 1 January and 1 March 2027 will not happen. The Budget on 28 October 2026 cancelled them and kept the 5p cut for another six months.
See what the July 2027 rise means for your own car and mileage: extra a year, a month and per tank.
Work it out with the Fuel Duty Rise CalculatorThis guide 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.
Fuel duty rates, before and after 1 July 2027
| Period | Petrol and diesel | Red diesel |
|---|---|---|
| 23 March 2022 to 14 June 2026 | 52.95p | 10.18p |
| 15 June 2026 to 30 June 2027 | 52.95p | 6.48p |
| From 1 July 2027 | 60.59p | 11.65p |
Rates per litre, from Budget 2026, Overview of Tax Legislation and Rates, Annex A. Paragraph 2.18 of the same document extends the 5p cut, and the further 3.7p cut on red diesel, to 30 June 2027. From 1 July 2027 rates go back to their level before the cut, 57.95p, uprated by RPI inflation. That is where 60.59p comes from.
What the rise adds for a driver
The duty goes up by 7.64p a litre. VAT at 20% is charged on the whole pump price, duty included, so at the forecourt the rise is 9.17p a litre. Here is what that means over a year at the average 7,100 miles (DfT National Travel Survey, England, 2025):
| Car | Extra per mile | Extra per year |
|---|---|---|
| 30 mpg | 1.4p | £98.64 |
| 40 mpg | 1.0p | £73.98 |
| 50 mpg | 0.8p | £59.18 |
| 60 mpg | 0.7p | £49.32 |
These figures assume the rest of the pump price stays where it is. Oil and wholesale prices move the price at the pump from week to week as well, often by more than the duty change. Electric cars pay no fuel duty.
What a litre of fuel is made of today
At the UK average pump prices for the week of 26 October 2026 (DESNZ weekly road fuel prices):
| Per litre | Petrol | Diesel |
|---|---|---|
| Pump price | 174.07p | 199.22p |
| Fuel duty | 52.95p (30%) | 52.95p (27%) |
| VAT | 29.01p (17%) | 33.20p (17%) |
| Fuel, delivery and retailer margin | 92.11p (53%) | 113.07p (57%) |
Tax is 47% of the petrol price and 43% of the diesel price. Because duty is a fixed amount per litre, its share falls when oil prices rise. For a fuller explanation of how duty works, see our UK fuel duty guide.
Red diesel
Red diesel (marked gas oil) is 6.48p a litre until 30 June 2027, after a further 3.7p cut that the Budget also extended. From 1 July 2027 it is set to be 11.65p. Since April 2022 most businesses can no longer use it; agriculture, forestry, fish farming and rail are among the uses still allowed.
How the cut got here
The 5p cut started on 23 March 2022, when petrol and diesel prices jumped after Russia invaded Ukraine. Before then the rate had been frozen at 57.95p since 2011. The cut has been extended several times since. Before Budget 2026 the plan was to add 3p back on 1 January 2027 and 2p on 1 March 2027; the Budget replaced that with a single change on 1 July 2027.
Ways to soften the rise
- Shop around: prices vary between forecourts in the same town, and supermarket sites are usually cheapest.
- Check your real mpg: use your trip computer or a brim-to-brim fill-up, then put the figure in the fuel cost calculator to see your own annual cost.
- Avoid super unleaded unless your engine needs it.