Keir Starmer has issued a major update on Labour’s fuel duty plans, with petrol and diesel charges set to increase in the coming months. Fuel duty is scheduled to increase from the autumn as the first part of a reversal of the 5p cut to the tax, introduced by the Conservatives in 2022.
The first price hike is scheduled to come into effect gradually from September, with further increases in December and March 2027. Labour has come under pressure to reverse the fuel duty policy amid global oil disruption in the Middle East and rising petrol and diesel prices.
However, Rachel Reeves refused to announce changes to the policy in her Spring Statement and Sir Keir Starmer came under fire to make updates in Prime Minister's Questions on Wednesday. Tory leader Kemi Badenoch asked how an increase in fuel duty would help with the cost of living as families struggled with bills.
She explained petrol costs were the single biggest cost affecting family finances and accused Labour of “not understanding how important cars are to people in rural areas”. But the Prime Minister issued a rare update, explaining the fees would be “under review”
Keir Starmer said: “Fuel duty is frozen. It's going to remain frozen until September, and we will keep the situation under review in light of what's happening in Iran. We're working across all departments and with allies to deal with the impact of the conflict in Iran."
Fuel duty prices currently sit at 52.95p per litre, with Labour’s reversal set to return the prices to their pre-2022 level of 57.95p per litre.
Ms Badenoch hit back, suggesting that Labour had “no answers” over fuel duty and accused the Government of treating drivers like a “cash cow”.
She claimed that Tories were “on the side of drivers” and boasted of their record of freezing fuel duty fees every year since 2011.
The Conservative leader explained that Labour would be hiking fuel duty for the first time in 15 years. But Kier Starmer hit back again, claiming that bills had not yet increased.
He said: “There hasn't been a rise; it is frozen until September.”
HM Revenue and Customs (HMRC) has said that increasing fuel duty prices is expected to impact an estimated 36 million individuals.
