The Government has provided an update on its efforts to address soaring petrol and diesel prices following the current Middle East conflict. Since US and Israeli strikes on Iran at the end of February, pump prices across the UK have surged dramatically.
Motorists enjoyed a relatively stable start to the year, with prices hovering between 130p and 140p per litre for both fuels. But that stability collapsed at the beginning of March, as rapidly escalating oil prices triggered sharp increases.
Oil markets have been rattled by concerns over the effective closure of a crucial shipping route, the Strait of Hormuz, which shows no signs of reopening as the US and Iran have yet to reach any peace agreement, despite a ceasefire currently holding.
The price of a barrel of Brent Crude stood at approximately $114 on Wednesday morning, having been as low as $70 before hostilities commenced.
Petrol now sits in the 150p to 160p range, while diesel is between 180p and 190p at most UK forecourts. It has added considerable expense to every fill-up for UK drivers and prompted calls for Government intervention, given that a substantial portion of the pump price comprises taxation.
Raising a question in Parliament, Gregory Stafford, Conservative MP for Farnham and Bordon, said: “To ask the Chancellor of the Exchequer, whether she (a) is taking steps to reduce fuel duty and (b) has considered halving fuel duty to help reduce the cost of living.”
The reply came on Tuesday from Exchequer Secretary Dan Tomlinson, MP for Chipping Barnet, who said: “The Government has already taken action on fuel affordability at the pump. At Budget 2025, the Government extended the 5p-per-litre cut for a further five months, until the end of August this year.
“The Government has also cancelled the increase in line with inflation for 2026/27. Instead, rates will only gradually return to early 2022 levels by March 2027. Since Autumn Budget 2024, the Government’s decisions to freeze fuel duty will save the average motorist over £90.
“Fuel duty raises approximately £24 billion each year, where this revenue helps fund the vital public services and infrastructure that people across the UK expect. As with all taxes, the Government keeps fuel duty under review.”