On 26 November 2025, Chancellor Rachel Reeves delivered the Autumn Budget 2025 with a big promise to ease the cost of living.
For motorists, that seems to have been translated into a mix of short-term relief and signals about where driving costs are heading next (especially for EV users).
1. Fuel duty stays frozen (for now)
For petrol and diesel drivers fuel duty remains frozen at 52.95p per litre. That also keeps the long-running 5p-per-litre still in place.
What that means for motorists
- Short-term relief at the pump.
- But it’s not a permanent policy. The Budget documents outline a staged rise starting from September 2026.
If you’re looking at your budgeting for driving costs in 2026/27, it may be time to assume that your fuel costs will start creeping up again in late 2026.