UK Fuel Duty Rates 2026: Petrol & Diesel Tax Explained

The current UK fuel duty rate is 52.95 pence per litre for petrol and diesel. Drivers also pay 20% VAT on the final pump price, including the duty. Here is the current rate, the tax calculation and the announced timetable for 2027.

What is fuel duty?

Fuel duty is an excise tax charged at a fixed amount for each litre or kilogram of fuel. It is payable by fuel producers and importers and is normally passed through to drivers in the pump price. Unlike VAT, the duty on a litre of standard petrol or diesel does not change when the retail price moves.

The current 52.95p rate includes a temporary 5p-per-litre cut first introduced in March 2022. In May 2026, the government extended that full cut from the end of August to the end of December 2026.

How much of the pump price is tax?

There are two main taxes on road fuel: the fixed fuel duty and VAT at 20%. Because the displayed pump price already includes VAT, the VAT contained in it is one-sixth of the total—not 20% added again. VAT also applies to the part of the price that covers fuel duty, which is why this is often described as paying tax on tax.

Worked example at £1.50 per litre

The percentage is not fixed. Fuel duty stays at 52.95p while the VAT amount changes with the selling price. Combined tax therefore makes up a larger share when pump prices fall and a smaller share when they rise. To calculate the tax at any displayed price, divide that price by six to find the VAT, then add 52.95p.

Will fuel duty increase in 2027?

Under the current legislative timetable, the main petrol and diesel rate would rise to 55.95p per litre on 1 January 2027 and return to 57.95p on 1 March 2027. However, HMRC's amended policy paper says the government will confirm the final rates at Budget 2026. Those 2027 figures are therefore the default timetable, not a guarantee of what motorists will ultimately pay.

A brief history of UK fuel duty

The main rate reached 57.95p per litre in March 2011 and remained there until March 2022, when the government introduced the temporary 5p cut. That reduced the amount charged on standard petrol and diesel to today's 52.95p per litre. The cut has since been extended several times, most recently through the end of 2026.

What drivers can control

Fuel duty is the same at every UK forecourt, but the wholesale cost, operating costs and retailer margin vary. That is why two nearby stations can still have noticeably different pump prices. Use our fuel price comparison tool to find the cheapest current petrol or diesel price near you.

For more background, read why UK fuel prices vary, check today's UK fuel prices or see our practical fuel-saving guide.

Frequently asked questions