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Regulatory Radar · United Kingdom (HM Treasury / HMRC) · Tax

UK fuel duty: 5p cut ends in two steps from January 2027

Adopted · updated 20 May 2026 · reviewed 23 October 2026 · UK
Next date: 28 Oct 2026

In response to high fuel prices from the Middle East conflict, the government kept the 5p fuel duty cut until 31 December 2026, cut red diesel duty to 6.48p a litre from 15 June to the end of 2026, and announced a 12-month HGV vehicle excise duty holiday. Duty on petrol and diesel then rises from 52.95p to 55.95p a litre on 1 January 2027 and to 57.95p on 1 March 2027, with RPI uprating from April 2027; rates are to be confirmed at the Budget.

For a parcel A 5p a litre rise in diesel duty over two months feeds into carrier fuel surcharges, which are already 16% at Royal Mail and Parcelforce.

Key dates

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Who it hits

Parcel carriersRoad hauliersShippers paying fuel surcharges

What to prepare

  • Check how each carrier's fuel surcharge index reacts to duty changes and when it resets.
  • Negotiate surcharge caps or notice periods before January 2027.

Our reading

The steps were already deferred once; if diesel stays high the Budget could defer them again, so plan for both cases.
Hormuz fuel billUK £135 gap

Sources

  1. Written statement HCWS49: transport taxation · UK Parliament · 2026-05-20
  2. Amended Fuel Duty rates: 2026 to 2027 · HM Revenue & Customs (GOV.UK) · 2026-05-22
  3. Healey sets a pre-Halloween Autumn Budget · Chase de Vere · 2026-09-10
  4. Fuel Duty & Tax: Budget 28 October 2026 fuel duty decision · PetrolPrices.co.uk · 2026-08-11

Information, not legal advice. Dates come from official texts or quality legal and trade press, and slip often: always check the current text before acting. Back to the full radar.

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