As part of the support package, the temporary 5p cut to fuel duty will now remain in place until the end of the year, helping to keep petrol and diesel prices lower for millions of drivers across the UK. The move means fuel duty will stay at its lowest level in more than 16 years.
The announcement comes as global instability and ongoing conflict in Iran continue to place pressure on fuel prices and wider living costs.
The extension is expected to provide significant support for the transport and logistics sector, particularly for HGV operators, freight forwarding companies, courier services and businesses responsible for moving goods across the country. With fuel representing one of the largest operational costs within the industry, maintaining lower fuel duty rates could help businesses manage rising expenses, improve cash flow and reduce pressure on transport pricing.
For freight and haulage companies operating large fleets, the continued reduction may help offset increasing costs linked to wages, maintenance, insurance and supply chain disruption. It could also help stabilise delivery charges for customers and support the wider movement of goods throughout the UK economy.
Additional support has also been confirmed for businesses heavily reliant on transport and fuel, including:
- A 12-month road tax holiday for hauliers, with savings of up to £912 per vehicle
- Reduced red diesel duty rates for farmers, rail freight operators and other eligible users until the end of the year
- Continued action to monitor pump prices and prevent unfair fuel price increases
The Government says the measures are designed to ease pressure on households, support supply chains and help businesses manage rising operating costs while maintaining economic stability.
According to HM Treasury, the extended fuel duty cut could save the average driver around £120 by the end of 2026.
Find further details here.
Photo by Sergei Skrynnik
