UK · Analysis
UK fuel duty relief runs to June 2027. Then rates rise.
By Fleet Fuel Index ·
Main fuel duty stays at 52.95p per litre until 30 June 2027. From 1 July 2027 it is scheduled at 60.59p. That is a duty rate, not a pump price. Fleets should plan for the step-up.
Analysis of published rates and guidance. Not a news report of a pump price, and not tax advice.
The Budget on 28 October 2026 keeps the temporary cut in the main rates of fuel duty until 30 June 2027. It also defers the planned Retail Prices Index increase until 1 July 2027.
According to the official rates annex, updated on 5 November 2026, the main duty on unleaded petrol and diesel is 52.95 pence per litre through 30 June 2027. From 1 July 2027 it is scheduled at 60.59 pence per litre.
That figure is a duty rate, not a pump price. Pump prices also include the product cost, retailer margin and VAT. The July 2027 change does not say what a fleet will pay per litre.
HGV vehicle tax is separate
DVLA guidance published in June 2026 sets a temporary £1 annual rate for most heavy goods vehicles. That is a 12-month rate when an eligible vehicle is taxed between 1 July 2026 and 30 June 2027.
Named classes include standard HGVs, trailer HGVs, small island, combined transport and special types. The HGV levy is a separate charge and still applies. The £1 rate was not introduced by the October Budget. Check the tax class and the licence start date before putting £1 in a budget.
What this means for a fleet budget
Use 52.95p only through 30 June 2027. Model 60.59p duty from 1 July 2027, without calling it a pump price. Use the £1 HGV rate only inside DVLA's taxing window. There is no guaranteed saving. This is general information, not tax advice.
Sources
- HM Treasury, Budget 2026 announcement, 28 October 2026
- Budget 2026 Overview of Tax Legislation and Rates, section 2.18 Fuel Duty Rates, updated 5 November 2026
- Annex A: rates and allowances, fuel duty tables, updated 5 November 2026
- DVLA, temporary £1 vehicle tax for most heavy goods vehicles
- Secondary industry read: Thrive Fleet, 30 October 2026
Sources opened on 9 November 2026. This page does not claim those sources have been re-read since that date.
General information for fleet and fuel managers. Not tax, financial or purchasing advice.