Autumn Budget 2026: What Drivers Should Watch for on Fuel Duty

The Chancellor delivers the Autumn Budget on 28 October 2026. For drivers, the headline question is simple: what happens to fuel duty? This guide was written before the announcement, so it explains where things stand and how to work out what any change means for you.

Where fuel duty stands now

Fuel duty is 52.95p per litre on both petrol and diesel. It has been frozen since March 2022, after a temporary 5p cut. VAT at 20% is then charged on top of the whole pump price, duty included.

What was already planned for 2027

Under the current plans reported by motoring and fleet publications, duty is due to rise by 3p in January 2027 and 2p in March 2027, reaching 57.95p per litre. Reports differ slightly on the exact timing, and the final rates are confirmed by the Chancellor, so check the official announcement rather than relying on any summary, including this one.

Industry groups have called for the freeze to be extended, and some analysts expect the January rise to be scrapped. Nothing is certain until it is announced.

What a few pence means in real money

Because VAT applies on top of duty, a 1p change in duty moves the pump price by 1.2p. That makes the planned rises look like this:

For a driver who covers 8,000 miles a year at 40 mpg, 6p a litre adds up to roughly £55 a year. It matters, but it is far smaller than the gap between the cheapest and dearest stations in the same town.

Why the pump price may not move one-for-one

Duty is only one part of the price. The other big drivers are the wholesale cost of oil and refined fuel, the pound-dollar exchange rate and retailer margins. We cover those in what affects the price of petrol and diesel. A duty change can be masked, or magnified, by a move in oil prices the same week.

What to do whatever the Chancellor says

• Check local prices before you fill up. On the day we looked, the gap between the cheapest and dearest E10 prices in our database was more than 55p a litre. See how to find the cheapest petrol near you.
• Do not panic-buy. Pump prices rarely jump overnight because of a Budget, and a full tank costs the same whether you buy it today or tomorrow if the price has not moved.
• Watch the January date. If a rise is confirmed, it takes effect at the pumps over the following days as stations restock.

Find the cheapest fuel near you and see exactly what each station is charging right now.

For the full background on the tax, read fuel duty explained.