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Written question asked by Kate Osborne (Labour) on Monday, 15 June 2026, in the House of Commons. It was due for an answer on Wednesday, 17 June 2026. It was answered by Dan Tomlinson (Labour) on Tuesday, 23 June 2026 on behalf of the Treasury.


Fuels: Excise Duties

Question

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of the continued freeze in fuel duty on (a) CPI inflation and (b) the cost of living.

Answer

The extension of the temporary 5 pence per litre cut to fuel duty rates until 31 December 2026 will help to reduce pressure on costs at the pump and provides certainty to motorists.

The measure will have a direct effect on the Consumer Price Index (CPI); it is expected to reduce CPI by 0.04 percentage points in quarter 4 2026.

In total, the decisions taken since the 2024 general election to freeze fuel duty will save motorists 11p per litre or £120 for the average car.

Further details on the impacts of this measure, including on households and businesses, are set out in the Tax Information and Impact Note, available here:

https://www.gov.uk/government/publications/amended-fuel-duty-rates-for-2026-to-2027/amended-fuel-duty-rates-2026-to-2027


Secondary information

Type
Written question
Reference
9699
Session
2026-27
Related items
Fuels: Excise Duties
Monday, 29 June 2026
Written questions
House of Commons
Subjects
Excise duties Fuels
Link
View this Written question on www.parliament.uk