Labour has issued a rare update on the future of fuel duty price rises over concerns that military action in Iran could lead to higher petrol and diesel pump fees. Labour has maintained the 5p per litre reduction in fuel duty introduced by the Conservatives in March 2022, extending the discount at the Autumn Budget.
However, the 5p reduction is only scheduled to remain in place until September 2026, with price hikes expected this Autumn. As part of a staggered increase, fuel duty is set to rise by 1p per litre on September 1, with further increases of 2p in December 2026 and 2p in March 2027.
However, there has been concern that United States airstrikes in Iran could hike the price of Brent Crude Oil and could lead to an increase in petrol and diesel pump prices in the UK.
Sky News presenter Trevor Phillips pressed Labour over fuel duty rises, asking whether Rachel Reeves could intervene if a rise in oil prices push up fees at the pumps.
Trevor asked: “Would it be wise to delay the rise in fuel duty which is planned?” However, Defence Secretary John Healey appeared to dodge whether price rises were being re-evaluated.
He responded: “She is watching very closely, as you’d expect, any movement in the oil prices. We've seen before when Russians invaded Ukraine that the price of war is so much greater than the cost of deterrents. We saw double digit inflation. We are still paying higher energy and fuel prices now after that invasion.”
But, Trevor pushed back, asking directly whether the Chancellor would “reconsider the rise in fuel duty" which would “add dramatically to the cost of living”.
Mr Healey added: “We are 24 hours into this conflict, the Chancellor is watching this very closely and as you’d expect as Defence Secretary, my first concern is protecting British people, military and civilians in the region. It’s making sure that we can protect our bases, that we can protect our allies.
“That we do what we can either by defensive military action or by diplomacy to prevent the risk of further escalation and therefore a greater impact on people's living standards and prices in Britain and other countries.”