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September 2026 Fuel Duty Rise Cancelled: What Happens Next?

PetrolPalUpdated 27 September 20263 min read
September 2026 Fuel Duty Rise Cancelled: What Happens Next?

Key Takeaways

  • ›The 1p fuel duty rise planned for 1 September 2026 was cancelled on 20 May 2026.
  • ›Petrol and diesel duty stays at 52.95p per litre until 31 December 2026.
  • ›The legal default is 55.95p from 1 January 2027 and 57.95p from 1 March 2027.
  • ›Budget 2026 will confirm the final 2027 rates, so those rises are not certain.
  • ›With 20% VAT, a full 3p January rise would add about 3.6p per litre.

The 1p-per-litre fuel duty rise that was due on 1 September 2026 did not happen. On 20 May 2026, the government extended the temporary 5p cut for the rest of the year (HM Treasury, 2026). Petrol and diesel duty therefore stays at 52.95p per litre until 31 December 2026 (HMRC, 2026).

This article first described the September rise from the February 2026 HMRC schedule. That schedule was replaced in May, before the rise took effect. We have rewritten the article with the amended rates.

What Changed in May 2026?

HMRC's February 2026 schedule ended the 5p cut in three steps: 1p on 1 September 2026, 2p on 1 December 2026 and 2p on 1 March 2027 (HMRC, 2026).

On 20 May 2026, the Chancellor announced that the 5p cut would continue until the end of the year. HMRC published the amended rates on 22 May 2026. The September and December steps were removed (HMRC, 2026).

The government says the cut will have saved the average driver £120 since 2025 by the end of 2026 (HM Treasury, 2026).

What Are the Fuel Duty Rates Now?

HMRC's amended table lists the same main rate for unleaded petrol and road diesel (HMRC, 2026):

Fuel duty is 52.95p per litre until 31 December 2026, with legal default rates of 55.95p from 1 January 2027 and 57.95p from 1 March 2027.
Fuel duty main rate and 2027 legal default
  1. Until 31 December 2026: 52.95p per litre.
  2. From 1 January 2027: 55.95p per litre, a 3p increase.
  3. From 1 March 2027: 57.95p per litre, a further 2p increase.

The 57.95p rate is the level that applied before the cut started on 23 March 2022. HMRC calls the 2027 rates the "legislative default". The government will confirm the final rates at Budget 2026, so the January and March steps can still change.

What Could the 2027 Steps Add at the Pump?

VAT at 20% applies on top of fuel duty (GOV.UK). If retailers pass a duty change through in full, each 1p of duty adds 1.2p at the pump.

  • 1 January 2027 (3p duty): about 3.6p per litre, or £1.98 on a 55-litre fill.
  • 1 March 2027 (2p duty): about 2.4p more per litre, or £1.32 more on 55 litres.
  • Both steps together (5p duty): about 6p per litre, or £3.30 on 55 litres.

These figures are tax arithmetic only. Wholesale costs, exchange rates, delivery timing and retailer margins also move pump prices, often by more than a duty step.

What Should Drivers Do Now?

There is no duty deadline to beat in 2026. Duty will not change before 1 January 2027, and Budget 2026 may change that date or amount. A special trip to fill up early would cost fuel and save nothing.

Local price gaps matter more than the duty timetable. Compare stations on your normal route with the PetrolPal map, and check fuel prices in your area before a large fill.

For the full September decision, read Fuel Duty Will Not Rise in September 2026. For the next decision, read Will Fuel Duty Rise in January 2027?.

Frequently Asked Questions

Did fuel duty rise on 1 September 2026?

No. On 20 May 2026, the government extended the 5p cut until 31 December 2026, so the planned 1p rise did not take effect.

What is the UK fuel duty rate for petrol and diesel in 2026?

The main rate is 52.95p per litre for unleaded petrol and road diesel until 31 December 2026, under HMRC's amended rates of 22 May 2026.

Will fuel duty rise in January 2027?

A 3p rise to 55.95p on 1 January 2027 is the legal default. HMRC says Budget 2026 will confirm the final rates, so the rise can still change.

Is there a December 2026 fuel duty rise?

No. The December 2026 step in the February schedule was removed when the cut was extended to 31 December 2026.

How much would the January 2027 rise add to a full tank?

With 20% VAT and full pass-through, a 3p duty rise adds about 3.6p per litre. That is about £1.98 on a 55-litre fill.

References

  1. [1] Amended Fuel Duty rates: 2026 to 2027, HM Revenue & Customs, 2026-05-22 (accessed 2026-09-27)
  2. [2] Chancellor protects drivers and businesses from rising fuel costs, HM Treasury, 2026-05-20 (accessed 2026-09-27)
  3. [3] Fuel duty rates for 2026 to 2027, HM Revenue & Customs, 2026-02-26 (accessed 2026-09-27)
  4. [4] VAT rates, GOV.UK (accessed 2026-09-27)
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