Fuel duty is set to rise by 3p in January, when pump prices are already at their highest since 2022, and small businesses are absorbing costs beyond their control. At Right Fuel Card, we believe the Chancellor should freeze fuel duty at its current level and commit to that freeze for longer than just one Budget cycle.
Fuel duty and tax make up about half the price of every litre at the pump, and the planned rise will start in January. We believe the Chancellor should keep fuel duty frozen, at least until the end of this Parliament, because the businesses least able to absorb more costs are, overwhelmingly, the ones with the quietest voice in this debate.
Where does fuel duty stand now?
The government had planned to phase out the 5p cut introduced in 2022, with duty returning to pre-2022 levels by March 2027. But in May, as prices spiked with the Middle East conflict, the Chancellor pushed that plan back to the end of the year.
That delay gave drivers and businesses a brief reprieve.
But the underlying pressures haven’t gone away, and the conflict hasn’t ended. Since early September, pump prices have jumped by about 9p a litre. Just this week, petrol hit 170.54p (the highest since August 2022), and diesel reached 192.86p, nearing the all-time record of 199.05p set last June.
Filling up a typical family car now costs nearly £5 more than just a month ago.
Against this backdrop, the government’s plan to add another 3p to fuel duty in January couldn’t come at a worse time. We don’t believe this is the moment for a rise.
Why raising fuel duty now is the wrong move
We’re not alone in this view. The RAC, Road Haulage Association, and Petrol Retailers Association have all said that raising duty now would be the wrong call at the wrong time.
The RHA found that 78% of people worry that rising fuel and transport costs will push up the prices of food and essentials, and 80% want duties cut or frozen.
As RHA managing director Richard Smith puts it: “a fuel duty hike is a food price hike.”
That’s a fair point, but most of this debate focuses on big hauliers and household motorists. Another group has just as much at stake and far less of a voice: small businesses running just a few vans, who make up most of the UK’s fleet operators.
What does a 3p rise mean for a small business?
Consider a typical Right Fuel Card customer: a five-van trade business, with each van covering 15,000 miles a year at about 35mpg. A 3p duty rise alone adds around £290 a year to that business’s fuel bill, before any further market changes.
That £290 might not make headlines the way a national haulier’s fuel bill does.
But for a small electrical firm or a local landscaping business, already absorbing months of war-driven price rises, with no warning and no way to pass costs along like a big logistics company, that’s a real, avoidable hit at the worst possible time.
No one — not Right Fuel Card, our customers, or the Chancellor — can control global oil prices during a conflict.
The government can’t end the war, but it can recognise the financial pressure on drivers and businesses.
Fuel duty is different; it’s a lever the Chancellor can control, even as other pressures remain beyond reach.
There’s precedent for action
This isn’t a radical idea; other governments facing the same price spikes have already acted:
Spain, France, and Italy all offer rebates to help commercial operators manage diesel costs.
The Republic of Ireland scrapped its own planned fuel tax rises in response to the crisis.
When the UK government delayed the September and December rises, it showed it understands the principle; it just hasn’t gone far enough, or committed for long enough.
The RHA has also called for an essential user rebate in the UK, similar to those in Spain, France, and Italy, aimed at HGVs, coaches, and vans.
We think the UK should go further: if a rebate is introduced, it must include small trade and sole-trader fleets, the majority of commercial vehicles on Britain’s roads, not just the biggest operators with the loudest voice.
Our position: support for small and medium-sized businesses
At Right Fuel Card, we serve over 25,000 UK businesses, mostly small and medium fleets that feel every penny-per-litre increase immediately.
From our perspective, the case is clear:
Freeze fuel duty at its current level, and commit to that freeze for the rest of this Parliament, not just until the next Budget.
If an essential user rebate is introduced, make sure it includes small commercial fleets and sole traders, not just large haulage firms.
Treat fuel cost volatility as an ongoing reality, not just a temporary shock. This conflict has already produced one short-lived ceasefire, so duty policy should be built around that uncertainty rather than against it.
About Right Fuel Card
Right Fuel Card is a leading UK business fuel card provider dedicated to helping businesses of all sizes, from sole traders to large fleets, take control of their fuel costs and simplify fuel expense management. With access to over 98% of fuel stations across the UK, competitive pricing, and HMRC-approved digital invoicing, we make fuel management effortless whilst helping you save money. Our comprehensive service includes detailed online reporting, dedicated customer support, and optional RightProtect legal support for complete peace of mind on the road. Whether you're managing a single vehicle or an entire fleet, Right Fuel Card provides the tools and support you need to operate efficiently and compliantly.
Ready to start saving on fuel costs? Compare fuel cards online to find the perfect solution for your business. It takes just minutes to see how much you could save, and our expert team is ready to help you get started today.
This article reflects Right Fuel Card’s perspective as of Friday, 18th September 2026. All figures are based on the latest data from RAC Fuel Watch, the Road Haulage Association (RHA), and the Petrol Retailers Association (PRA), as well as statements published in the trade and national press this month.
All information contained within is correct at the time of writing, but please note that fuel prices remain highly volatile and figures may have changed since publication. We try our best to continue to update our guides, but not all guides are regularly reviewed - for the latest news and insight visit: rightfuelcard.co.uk/news-insights
