Energy and Fuels: Prices

(asked on 26th October 2026) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the impact of increases in energy costs and fuel prices on rural households.


Answered by
James Murray Portrait
James Murray
Financial Secretary to the Treasury and Paymaster General
This question was answered on 3rd November 2026

The Government recognises that households are feeling the effect of the conflict in the Middle East, given the sharp increase in global prices this year.

That is why Budget 2026 is providing breathing space for households by supporting them with their energy costs. The Government is providing the £100 Household Energy Payment, extending the VAT cut to electricity until July 2027, suspending import tariffs on kerosene heating oil until December 2028, and reforming gas standard charges to give households more control over what they pay.

Budget 2026 is also helping communities, including rural households, with transport costs. The Government is: extending the temporary 5p per litre fuel duty cut for a further six months to 1 July 2027; extending the additional 3.7p duty cut to red diesel to 1 July 2027; and supporting employees and self-employed people across the UK who use their own vehicles for work by increasing tax-free mileage rates.

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