Fuel duty is expected to rise by up to 7p per litre following the budget, as speculation grows that the chancellor will reintroduce inflationary increases and end the temporary cut. Environmental and transport campaigners are urging the chancellor, Rachel Reeves to align motoring costs with other forms of transport after years of fuel duty freezes, while rail fares have soared.

Treasury officials have reportedly advised Reeves to act now, with petrol prices lower than when the 5p duty cut was introduced in 2022. Motoring groups, however, argue that increasing fuel duty would disproportionately impact struggling drivers. The current duty stands at 52.95p per litre, generating around £25bn annually.

Campaigners like the Campaign for Better Transport believe reinstating inflationary rises could raise an additional £4.2bn, helping to reduce transport emissions, which account for nearly 30% of the UK’s greenhouse gases. They argue that public transport should be more affordable compared to driving, which has become cheaper due to fuel duty freezes.

Meanwhile, research shows wealthier households benefit more from lower fuel duty, as they own more vehicles. As electric vehicle use grows, there are calls for Reeves to consider a pay-per-mile tax as a fairer way to tax road users, but such proposals have historically been unpopular. The Treasury has declined to comment on any potential tax changes.