Fuel Duty Cut Extended to August 2026
Summary
HM Revenue & Customs has extended the temporary cut in fuel duty rates until the end of August 2026. Fuel duty rates will gradually return to March 2022 levels through phased increases starting September 1, 2026.
What changed
HM Revenue & Customs has announced an extension of the temporary cut in fuel duty rates until August 31, 2026. Following this extension, fuel duty rates will be gradually increased in three phases: September 1, 2026, December 1, 2026, and March 1, 2027, returning to March 2022 levels. The planned inflation-linked increase for 2026-2027 will not proceed.
This change impacts businesses involved in fuel purchasing and distribution, as well as consumers. Companies should prepare for the phased return to higher fuel duty rates, which will affect operating costs. The gradual increases provide a transition period, but businesses should factor these upcoming changes into their financial planning and pricing strategies.
What to do next
- Review fuel purchasing and distribution costs in light of phased duty increases.
- Update financial forecasts to account for higher fuel duty rates from September 2026.
- Communicate potential price adjustments to customers as duty rates change.
Source document (simplified)
Policy paper
Fuel duty rates for 2026 to 2027
This tax information and impact note is about the extension to the cut in fuel duty rates to the end of August 2026 and the new rates from September 2026.
From: HM Revenue & Customs Published 26 February 2026 Get emails about this page
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Fuel duty rates: 2026 to 2027
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Details
This measure extends the temporary cut in fuel duty rates until the end of August 2026.
The fuel duty rates will gradually return to March 2022 levels, by rate increases on:
- 1 September 2026
- 1 December 2026
- 1 March 2027 The planned increase to fuel duty rates, in line with inflation for 2026 to 2027, will not take place.
Updates to this page
Published 26 February 2026
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