Question to the HM Treasury:

To ask the Chancellor of the Exchequer, in reference to the Office for Budget Responsibility’s Economic and Fiscal Outlook published in March 2026, what assessment she has made of the potential impact of planned fuel duty increases on households in rural and car-dependent areas; and what modelling the Treasury has undertaken on the additional commuting costs faced by motorists in those areas during a period of rising global fuel prices.

The Chancellor considers a wide range of impacts when taking decisions on tax policy. At Budget 2025, the Government announced that the 5p cut in fuel duty would be extended until the end of August 2026, with rates then gradually returning to March 2022 levels by March 2027. The planned increase in line with inflation for 2026/27 will also not take place, with RPI uprating resuming from 2027/28 onwards.

Since Autumn Budget 2024, the Government's decisions to freeze fuel duty will save the average motorist over £90 – or 8-11 pence per litre.

The Government has published Tax Impact and Information Notes (TIINs) assessing the impacts of the 2026/27 fuel duty rates, which can be found at GOV.UK:

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

The Rural Fuel Duty Relief Scheme provides a 5p reduction to motorists buying fuel in certain areas. The areas included in the scheme demonstrate certain characteristics such as: pump prices much higher than the UK average; remoteness leading to high fuel transport costs from refinery to filling station, and; relatively low sales meaning that retailers cannot benefit from bulk discounts.

As the Chancellor has set out, a rapid de-escalation in the Middle East remains the best way to keep prices affordable at the pump. As with all taxes, the Government keeps fuel duty under review.