Rachel Reeves, Chancellor of the Labour Party, has confirmed that the fuel duty for unleaded petrol will remain at 53p per litre until December 31, 2026. This decision extends the temporary 5 pence per litre reduction first introduced during the Spring Statement in March 2022. The government aims to ease the financial burden on drivers and businesses amid rising fuel prices. Additionally, from June 15, 2026, there will be a further reduction of 3.7p per litre for gas oil (red diesel), biodiesel, and bioblend until the end of 2026. The current arrangement will revert to the levels set at Budget 2025 starting January 1, 2027, with final rates to be confirmed at Budget 2026. Sir Keir Starmer highlighted the importance of this extension during Prime Minister's Questions, noting the previous cuts introduced by the Conservative government. According to Steve Gooding from the RAC Foundation, while this announcement may not immediately lower fuel prices, it acknowledges the financial strain on consumers and businesses caused by high pump prices, exacerbated by the ongoing conflict in Iran.