Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has considered introducing additional taxation on diesel used by commercial road haulage operators.

The Government recognises the pressures faced by drivers and other fuel users from price increases from the conflict in the Middle East. At Budget the Chancellor announced the Government is extending the 5 pence per litre (ppl) fuel duty cut by a further six months to July 2027 and delaying uprating until the same date, providing breathing space to motorists whilst prices are high. Therefore, fuel duty will remain at 52.95ppl for both petrol and diesel to July 2027.

The government’s decisions on fuel duty across this Parliament will save the average car driver £230, the average van driver saves £472 and the average heavy goods driver nearly £4000 compared to plans under the previous government, and means petrol and diesel will be 15p per litre cheaper from April 2027.

Recognising the importance of the haulage sector, the Government also announced a 12-month vehicle excise duty (VED) holiday for the majority of heavy goods vehicles, with hauliers and operators of fuel based refrigerated road transport also benefiting from the extension of the 5p fuel duty cut.

Rail freight is eligible for red diesel entitlement to avoid perverse environmental outcomes, namely transferring rail freight or passengers to more polluting lorries, coaches and cars if costs rose. Red diesel is taxed at 6.48ppl following the introduction of a 3.7ppl cut, which at Budget the government announced will be extended to 1 July 2027.

As with all taxes, the Government keeps fuel duty under review; and any changes are announced at fiscal events.