Iran crisis sends fuel prices rocketing as drivers brace for Rachel Reeves's statement today

Key Highlights

• Last year, Ms Reeves confirmed that the long-running fuel duty discount would come to an end this September.
• Under her plan, fuel duty would rise by 1p initially, followed by two further increases of 2p in December and 1p in April 2027.
• She said at the Autumn Budget: "Under current plans, the temporary 5p cut to fuel duty that was introduced during the pandemic will come to an end in April and fuel duty will be uprated in line with inflation. Chancellor Rachel Reeves will announce the Spring Statement later today | PA"But I know that the cost of travelling to and from work is still too expensive, so I am extending the 5p cut until September 2026.
• And because I know that changes in wholesale prices are not always passed onto motorists."The fuel duty freeze has been kept in place by successive governments for more than a decade, although critics have argued that scrapping it now would be a major shift at the worst possible time.
• A spokesperson for the Treasury said: "We have extended the 5p fuel duty cut from this month to the end of August to support drivers across the country." LATEST DEVELOPMENTS Car tax changes to have huge impact as drivers worry about Rachel Reeves' cost hikes next monthDrivers avoid toll roads and congestion charges amid 'unpleasant cocktail' of rising costsElectric car revolution in full swing as EV uptake moves past 'wealthy early adopters'The 5p fuel duty cut was introduced in the aftermath of Russia's invasion of Ukraine in 2022 | PAMr Doogan has urged the Chancellor to abandon the planned rises altogether, stating drivers face what he called a "devastating double hit".