Ministers Urge John Healey to Reconsider Fuel Duty Increase Amid Economic Concerns

Ministers are urging John Healey to abandon plans to increase fuel duty by up to 7p per litre due to concerns about the economic impact and the cost of living. Senior officials have informed the Daily Mail that the government should not proceed with the planned phased increase starting in January, especially given the current high fuel prices. The RAC reported that diesel prices have reached an all-time high of £1.99 per litre, exacerbated by supply issues related to the conflict in the Middle East. There are concerns that prices could escalate to £3 per litre if former President Donald Trump restricts diesel exports to the UK to lower prices in the US. One minister indicated that the government should not eliminate the temporary 5p-a-litre cut in fuel duty implemented by the Conservative government in 2022. The source called for the Chancellor to postpone the increase indefinitely, stating, 'We just cannot let this rise go ahead and credibly claim we are a cost-of-living government – it is unthinkable.' Another Cabinet member expressed that the situation regarding fuel prices is alarming, noting, 'The whole country runs on diesel – it is not just people going to work, it is everything on the supermarket shelves.' Under the current plan, fuel duty is set to rise by 3p per litre on January 1, followed by an additional 2p increase on March 1. The Treasury is also expected to end a 16-year freeze on fuel duty next year, which would add another 1p in April. Additionally, VAT will contribute another 1.2p per litre. The total increase of 7.2p could add nearly £4 to the cost of filling a family car with petrol. Treasury sources indicated that 'no decision' has been made regarding the fuel duty increases, but maintaining the 5p duty cut would cost the Treasury £2.4 billion annually at a time when Mr. Healey is working to balance the budget.