Fuel Duty Rates Set to Increase by £60 for Drivers in January 2027
Rachel Reeves confirms rule change costing drivers £60 from January 1
Image: Birmingham Live
Rachel Reeves has announced that while the current fuel duty cut will extend until the end of the year, rates will increase by 3p per litre starting January 1, 2027. This change is expected to cost drivers an additional £60 annually, raising the unleaded petrol duty to 55.95p per litre.
- 01Fuel duty will increase by 3p per litre from January 1, 2027, raising the rate to 55.95p.
- 02The current 5p cut in fuel duty will be extended until the end of this year.
- 03The fuel duty rates will further rise to 57.95p per litre starting March 1, 2027.
- 04The government claims the freeze since 2025 could save drivers £120 by year-end, equating to £60 annually.
- 05Conservative leaders criticize the Labour government's decision as a reversal under pressure.
Advertisement
In-Article Ad
Rachel Reeves, the Labour Party's spokesperson, has confirmed that the current fuel duty cut of 5p will be maintained until the end of this year. However, starting January 1, 2027, fuel duty rates will increase by 3p per litre, bringing the unleaded petrol duty to 55.95p. This increase is part of a scheduled rise that will see the rate climb further to 57.95p per litre on March 1, 2027, reverting to levels last seen before March 23, 2022. The government estimates that the extended freeze will save the average driver £120 since 2025, translating to £60 annually. Conservative Party representatives have criticized this move, labeling it a
Advertisement
In-Article Ad
The increase in fuel duty will directly affect drivers' costs, adding financial pressure during an ongoing energy crisis.
Advertisement
In-Article Ad
Reader Poll
How do you feel about the upcoming fuel duty increase?
Connecting to poll...
More about Labour Party
Read the original article
Visit the source for the complete story.