Ministers may scrap fuel duty hike if Middle East war drags on, Ed Miliband suggests
The government is considering canceling a planned fuel tax increase in response to rising energy prices caused by the war in the Middle East, the energy minister has suggested.
Ed Miliband said the government was “sending a clear message” that it would “stand by people through this crisis” at a time when pressure is mounting on the government to protect consumers in the face of rising costs.
Fuel duty is currently frozen to help drivers with living costs, but will end this autumn. Chancellor Rachel Reeves has so far resisted calls to cancel the planned hike in response to a surge in oil prices caused by Donald Trump’s war on Iran.
Asked whether plans to end a 16-year fuel duty freeze in September would be reversed due to a rise in oil prices, he said: “Let me answer by saying, I mean, I’ll be clear with you, we don’t know how long this conflict is going to last and so with five months to go until September, we’ll have to see where we are, frankly.”
He then spoke of the chancellor’s actions to reduce energy bills, adding: “We will stand with the British people through this crisis and will do whatever it takes to do so.”
Asked whether this meant a fuel duty freeze, Mr Miliband said: “You’re asking me to sort of speculate about what the Chancellor will do on fuel duty… but look, I’m sending a clear message, we’ll be there for people in this crisis.”
This comes as fears of a cost-of-living crisis similar to the one experienced in 2022 as a result of Russia’s invasion of Ukraine are fueled by oil prices rising more than 20 per cent to more than $100 per barrel and gas prices rising by more than 50 per cent.
The RAC’s head of policy said last week that diesel prices had risen by around 9 per cent since February 28. Meanwhile, RAC Fuel Watch said petrol prices were on average 6 per cent higher over the same period.
Chancellor Rachel Reeves had previously insisted the increase would continue in September. But ministers softened their stance last week, with prime minister Sir Keir Starmer telling MPs the planned 5p increase would be “reviewed” before it comes into effect in September.
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