UK fuel duty set to rise, adding up to 57.95p per litre by March

The long-standing freeze on UK fuel duty, in place since 2011 and cut by 5p after Russia's invasion of Ukraine, is slated to end early next year. The indirect excise tax on diesel and unleaded petrol will increase by 3p in January and a further 2p in March, bringing the rate to 57.95p per litre. Analysts note that diesel prices have already hit a record of £2 per litre, adding roughly £32 to the annual cost of running an average family car.

Chancellor John Healey said the final decision will be made in the Autumn Budget on October 28 and has not ruled out extending the 5p cut. Prime Minister Andy Burnham also signaled openness to abandoning the planned rise, citing the broader energy crisis affecting household bills. Both officials emphasized the pressure on motorists and the limited fiscal flexibility available.