Britain to delay hike in motor fuel tax to show action on prices
Britain will delay a planned increase in motor fuel duty to alleviate pressure on drivers amid rising fuel prices due to the war in Iran. Prime Minister Keir Starmer announced that current duty rates will remain unchanged until the end of the year, alongside a road tax holiday for hauliers. The government aims to support households and businesses facing increased costs while managing inflation concerns.
- ▪The planned fuel duty increase was set to occur in September, December, and March 2027.
- ▪The total support package is valued at over £400 million, funded partly by an increase in the electricity generator levy.
- ▪The average price of petrol has surged by 20 percent since the war began, while diesel prices have risen by 32 percent.
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Britain to delay hike in motor fuel tax to show action on pricesSign up now: Get ST's newsletters delivered to your inboxPrime Minister Keir Starmer said that the government will maintain the current duty rates until the end of the year.PHOTO: REUTERSPublished May 21, 2026, 11:49 AMUpdated May 21, 2026, 11:51 AMListenLONDON - Britain will delay a planned hike in motor fuel duty in a bid to ease the pressure on drivers since the war in Iran erupted.Prime Minister Keir Starmer said on May 20 that the government will maintain the current duty rates until the end of the year after a surge in petrol and diesel prices triggered by the conflict.
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