Media reports that the Chancellor John Healey will continue the freeze on fuel duty in the Budget tomorrow (28 October) are raising hopes in the logistics industry.
The reports claim that the Treasury will maintain both the baseline freeze and the temporary 5p-per-litre discount, which would bring some much needed relief to hauliers and the wider supply chain.
Ben Fletcher, Logistics UK chief executive, said the reports will be raising beleagured fleet operators’ hopes.
He said: “Logistics businesses across the UK will be hoping that today’s media reports about the continued freeze in fuel duty prove to be accurate.
“Retaining the current 5p per litre cut in tomorrow’s Budget would be a pragmatic measure that keeps trade moving, supports growth in every postcode and avoids adding further inflationary pressures at a time of rising costs for consumers and businesses.
“We believe the case for maintaining the current Fuel Duty rate is clear as businesses continue to face significant cost pressures and economic uncertainty.”
Richard Smith, RHA chief executive, urged the Chancellor to make the rumours a reality.
He said: “We’ve been clear ahead of this Budget. A fuel duty hike remains a food price hike.
“Everything on a supermarket shelf got there on a lorry or van, so when it costs more to move it, it costs more for us all to buy it.
“Wednesday is the last opportunity for the Chancellor to change course.
“He can’t control the price of fuel, but he can control what the Treasury adds to it.
“Give households and motorists some relief. Scrap the planned fuel duty rises and crucially, give lorry, van and coach firms a rebate of 15p a litre.
“We call on Chancellor Healey to back the businesses that keep Britain moving.”
Fuel prices have surged significantly in the UK, largely driven by the Iran War. According to RAC data, the average cost of a litre of diesel at UK filling stations recently breached the £2 mark for the first time.
The 5p-per-litre discount, originally introduced in 2022, was scheduled to be phased out with operators bracing for a 3p-per-litre duty hike on 1 January 2027, followed by an additional 2p increase in March.
If the 5p cut was reversed that could add around £3.30 to the cost of filling a standard 55-litre tank including VAT, which would hit fleet operators hard.
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