Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate he has made of the potential impact of extending the Carbon Border Adjustment Mechanism to imported refinery products on the retail price per litre of (a) petrol and (b) diesel.

At Budget 2026, the Government announced that it intends to expand the scope of the Carbon Border Adjustment Mechanism (CBAM) to include refinery products, subject to consultation on the feasibility and impacts of doing so.

This consultation is the next step of the process and will help to ensure we get the details right. The Government will confirm a timeline for implementation in due course, but we do not expect CBAM for refinery products to be in place for a few years, so there will be no impact on petrol or diesel prices in the short term.