From Dailymail · · 2m
UK fuel prices hit £2 a litre as Labour faces pressure to scrap Fuel Duty hike
Near-record fuel prices threaten inflation, forcing Labour to reconsider planned Fuel Duty hike amid driver backlash
In brief
Near-record fuel prices threaten inflation, forcing Labour to reconsider planned Fuel Duty hike amid driver backlash Over 10% of UK forecourts now charge £2 a litre for diesel, pushing Labour to abandon planned Fuel Duty increase Originally reported by Dailymail.
Record fuel prices surge
Over 10% of UK forecourts now charge £2 a litre for diesel, with prices hitting near-record levels
Price impact on drivers
Filling a family car's average 55-litre tank now costs £94 for petrol and £107 for diesel
Inflation connection
Fuel prices have driven UK inflation from 2.9% to 3.1% since the Iran war began
Labour's planned hike
Labour plans to raise Fuel Duty by 3p a litre on January 1 and 2p on March 1, netting billions for the Treasury
Haulage sector impact
One haulage firm's weekly fuel costs have surged by £2 million since the Iran war began
Tax relief push
RAC fuel expert calls for Fuel Duty relief in next month's Budget to ease household pressure
Reform UK criticism
Reform UK deputy leader says drivers are 'literally being taken for a ride' by Labour's Fuel Duty plans
Haulage boss warning
A 96-year-old haulage firm reports weekly fuel costs have jumped to £2.9 million
Treasury response
Treasury says tax decisions are for the Chancellor to make, not for routine speculation
Inflation threat
Fuel prices could trigger protests if they exceed £2 a litre, a milestone that has sparked past demonstrations
Energy bill impact
Household energy bills are expected to rise by up to 26% as fuel prices surge
VAT windfall
Higher fuel prices have generated a £1.3 billion VAT windfall for the Treasury
Historical context
Diesel prices hit 199.05p in June 2022 after Russia invaded Ukraine, triggering similar economic shockwaves
Pre-war prices
Before the Iran war, diesel cost 142.38p and petrol 132.83p per litre
Current prices
Diesel now costs 193.85p and petrol 171.27p per litre, a four-year high
Fuel duty timeline
Labour's Fuel Duty hike is scheduled for January 1 and March 1, but faces pressure to be abandoned
The essence
Over 10% of UK forecourts now charge £2 a litre for diesel, pushing Labour to abandon planned Fuel Duty increase
