Fuel Duty

Definition

Fuel duty (also called Hydrocarbon Oil Duty) is a specific excise tax applied per litre of petrol, diesel, and other road fuels in the United Kingdom. It is set by HM Treasury and collected by HMRC at the point of release for consumption (typically at the terminal gate, paid by fuel wholesalers/distributors who then include it in the price charged to retailers). Fuel duty is a fixed amount per litre — it does not vary with the fuel price, crude oil price, or any other market variable.

Fuel duty is the UK-specific term for what is called excise duty in EU context, or Energiesteuer (Germany), TICPE (France), accijns (Netherlands/Belgium), or MÖSt (Austria). For the broader European excise context, see our excise duty glossary entry. For how fuel duty fits into the total UK pump price, see our petrol price per litre explained guide.

Current UK fuel duty rates (2026)

Fuel typeDuty rate (p/litre)Notes
Unleaded petrol (E10)52.95p/lStandard road petrol
Diesel (ULSD/DERV)52.95p/lSame rate as petrol since 2001
Biodiesel (road use)52.95p/lSame rate
LPG (road use)31.61p/kgLower rate per kg; major LPG fleet benefit
Natural gas (road use)24.70p/kgLower rate; CNG/LNG vehicles
Heating oil (red diesel, off-road)11.14p/lLower rate; illegal for road use

For LPG and CNG context, see our LPG glossary entry and CNG glossary entry.

The fuel duty freeze: 2011–2026

DateEventRate (p/l)
April 2011Rate before freeze; fuel duty escalator planned58.95p/l
August 2011George Osborne freezes duty, cancels escalator57.95p/l (small cut)
2011–2021Duty frozen at 57.95p/l through 10+ budgets57.95p/l
March 2022Rishi Sunak cuts duty by 5p/l (cost of living crisis)52.95p/l
2022–2026Successive budgets maintain 52.95p/l; cuts made permanent52.95p/l
Fuel duty's eroding real value
The 2011–2026 freeze means that, adjusted for inflation (CPI increased ~50% over this period), the real value of fuel duty fell from ~57.95p/l to the equivalent of approximately 38p/l in 2011 money. This represents a significant real-terms tax cut for drivers — but also a growing structural gap in UK transport revenue as EV adoption reduces fuel duty receipts from petrol/diesel. The Office for Budget Responsibility (OBR) projects fuel duty revenue declining from ~£25bn/year now to significantly lower levels by 2035 as EVs replace petrol/diesel cars. UK Vehicle Excise Duty (road tax) for EVs, and potentially road pricing, are under discussion as replacements.

UK fuel duty vs European excise comparison (2026)

CountryPetrol excise (approx. €/l)UK comparison
Netherlands€0.799/lHighest in EU; 50% above UK equivalent
France~€0.682/lHigher than UK equivalent
Germany€0.6545/lHigher than UK equivalent
UK (52.95p/l ÷ 1.17)~€0.57/lBelow France/Germany/Netherlands
Austria~€0.482/lBelow UK
Poland~€0.35/lWell below UK

What is fuel duty and how does fuel duty UK work?

What is fuel duty? Fuel duty UK (formally Hydrocarbon Oil Duty) is a fixed per-litre excise tax applied to petrol, diesel and other road fuels in the United Kingdom. At 52.95 pence per litre, it is the single largest tax component of the UK pump price — representing roughly 34-35% of a typical GBP 1.55 litre of petrol. Because 20% VAT is applied on top of the total pump price (including the duty), the combined tax share reaches approximately 53-55% of the pump price. The UK government's fuel duty page sets out the current rates, and the U.S. EIA country analysis for the UK provides an external perspective on British fuel taxation.

The UK fuel duty has been frozen since August 2011, with a further 5p/litre cut in March 2022 that was subsequently made permanent. In real (inflation-adjusted) terms, the duty's value has eroded by approximately 35% since the freeze began — an implicit tax cut for drivers but a growing revenue challenge as electric vehicle adoption reduces petrol and diesel consumption. The European Commission's energy taxation pages provide a useful comparison showing how UK duty rates compare with those across EU member states, where many countries charge significantly higher excise on petrol.

Frequently asked questions

What is the UK fuel duty rate in 2026?
52.95 pence per litre for both petrol and diesel in 2026. This reflects the 5p/l cut introduced in March 2022 (from 57.95p/l) that was made permanent. 20% VAT applies on top of the total pump price including duty, making the combined tax take approximately 53–55% of a typical £1.55/l pump price.
How long has UK fuel duty been frozen?
UK fuel duty has been frozen since August 2011 (when Chancellor George Osborne cancelled the fuel duty escalator). The 2022 5p/l cut (Rishi Sunak) to 52.95p/l was then maintained through successive budgets. In real (inflation-adjusted) terms, the duty's value has fallen by approximately 35% since 2011 — a significant implicit real-terms cut for drivers, but a growing revenue challenge as EV adoption reduces petrol/diesel consumption.
How does fuel duty affect petrol pump prices?
Fuel duty at 52.95p/l represents ~34–35% of a £1.55 UK pump price. VAT (20%) on the full price (inc. duty) adds another ~26p/l, giving a combined tax share of ~53–55%. A 1p/l duty change affects the pump price by ~1.2p/l (duty + VAT on it). The duty's fixed nature means UK pump prices are less volatile than crude oil — it forms a floor below which prices cannot fall.