Motorists across the UK are bracing for a significant increase in driving costs as the Labour government prepares to implement changes to fuel duty in the upcoming Autumn Budget.
Chancellor Rachel Reeves is set to deliver the statement on November 26, 2025, which is expected to mark the end of a long-standing freeze on fuel duty.
What the Budget means for your wallet
The potential changes could see fuel duty rise for the first time since 2011, effectively adding around £4 to the cost of filling a typical family car's tank.
This move would also scrap a temporary 5p per litre cut that has been in place since 2022. Combined, these actions could push the average price of petrol towards 142p per litre.
The AA has warned that the existing 5p reduction is the primary factor preventing pump prices from returning to the “worst levels UK drivers endured before Covid and the Ukraine War”.
Industry reaction and driver advice
Jack Cousens, head of roads policy at the AA, described the current situation as being on a “knife-edge”. He also highlighted a “pump-price postcode lottery”, where drivers in some towns pay £2 to £4 more for a tank of fuel due to local pricing strategies.
Simon Williams, head of policy at the RAC, offered some respite, noting a slight decrease in prices during October. He advised drivers to “use the myRAC app to search for the best prices in your area” and to seek out competitively priced independent forecourts.
Broader tax changes on the horizon
Beyond fuel duty, the Budget is also expected to bring reforms to car tax. Reports suggest that electric vehicle (EV) motorists could face a new pay-per-mile system.
This new framework, potentially called VED+, might charge EV road users at a rate of 3p per mile, signalling a major shift in how all drivers are taxed for using UK roads.
