Get ready for a shock at the pump, diesel drivers! A new 81p per litre charge is coming your way, and it’s not just a small change—it’s a game-changer. But here’s where it gets controversial: while one set of rules aims to save you money, another is set to hit your wallet hard. Let’s break it down.
Starting this month, a new law requires all petrol stations to report their prices to a centralised Fuel Finder map, making it easier for drivers to find the cheapest fuel nearby. This move, pushed by the Competition and Markets Authority, is designed to spark competition among filling stations, potentially saving drivers an average of £40 a year. Sounds great, right? But here’s the catch: from September 2026, the long-extended 'temporary' freeze on fuel duty will begin to thaw, pushing prices back up.
For diesel drivers, this means a double whammy. Not only will the freeze end, but the 5p fuel duty cut, in place since 2022, will be gradually reversed until March 2027. By the time it’s fully reinstated, drivers will be paying nearly 58p per litre in fuel duty alone—and that’s before the 20% VAT is added. Do the math, and you’re looking at 81p in taxes per litre of diesel. The RAC breaks it down further: over 60% of what you pay at the pump goes straight to the Treasury, totaling more than £40 billion a year when combined with other car-related taxes.
To put it in perspective, at today’s average diesel price of 140.9p per litre, once the freeze ends, 81p of that will be taxes, with just 60p going to the retailer. And this is the part most people miss: electric vehicle drivers aren’t off the hook either. From April 2028, a new ‘mileage tax’ will be introduced for EVs, charging 3p per mile for battery electric cars and 0.015p per mile for plug-in hybrids. The Chancellor claims this will fund road maintenance, but here’s the question: is this a fair trade-off, or just another way to fill the Treasury’s coffers?
The mileage tax is set to rise annually with the Consumer Price Index, potentially adding £300 per 10,000 miles driven in an EV. Yet, there’s still no clear plan on how this will be implemented or collected. What do you think? Is this a step toward fairness, or a hidden tax hike? Let us know in the comments—we’d love to hear your take on this hot-button issue!
