U.K. cancels a planned rise in motor fuel tax
The U.K. government has announced the cancellation of a planned rise in motor fuel tax and a 12-month road tax holiday for hauliers. This decision aims to alleviate cost-of-living pressures exacerbated by the conflict in West Asia. Prime Minister Keir Starmer emphasized the government's commitment to keeping fuel costs manageable for drivers.
- ▪The planned rise in motor fuel tax has been canceled by the U.K. government.
- ▪A 12-month road tax holiday will save hauliers up to £912 per vehicle.
- ▪The freeze on fuel duty will now be extended for the rest of the year, saving drivers 5 pence per litre.
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Britain will cancel a planned rise in tax on motor fuel and give a 12-month road tax holiday to hauliers, the government said on Wednesday (May 20, 2026), part of its efforts to ease cost-of-living pressures driven in part by the West Asia conflict.A freeze on fuel duty, currently saving drivers 5 pence per litre, was due to expire in September, but will now be extended for the rest of the year, the government said in a statement. The new 12-month road tax holiday will save hauliers up to £912 per vehicle, the government added. U.K. Government considers electric vehicle tax“I know many are feeling the pressure of energy and fuel costs, and are worried about how the conflict in Iran will affect their finances,” Prime Minister Keir Starmer said in the statement.
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