Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the Office for Budget Responsibility’s Economic and Fiscal Outlook published in March 2026, how much additional revenue would be raised from a one-penny increase in fuel duty per litre; and how much additional revenue will be raised from planned increases in fuel duty in each financial year from 2026-27.

This question was answered on 19th March 2026
The Government is taking action to ensure that fuel at the pump remains affordable. At Budget 2025, the Government extended the 5p-per-litre cut for a further five months, until the end of August this year. The Government has also cancelled the increase in line with inflation for 2026/27; instead, rates will only gradually return to early 2022 levels by March 2027.

The government has set out the expected impacts, including Exchequer impacts, from fuel duty and other Budget measures in the Budget 2025 Policy Costings document. This document can be found here: https://assets.publishing.service.gov.uk/media/692872fd2a37784b16ecf676/Budget_2025-Policy_Costings.pdf

HMRC publishes a ready reckoner which estimates the direct impact on HMRC tax revenues of simple changes to tax rates. For fuel duty specifically, the most recent publication estimates a 1% (approximately 0.6p) increase in fuel duty would result in £240m additional revenue in 26/27. This ready reckoner can be found here: https://www.gov.uk/government/statistics/direct-effects-of-illustrative-tax-changes