Keir Starmer’s appointed advocate for managing living expenses has suggested that the government should evaluate the option of extending or possibly increasing the 5p reduction in fuel duty amidst escalating tensions in the Middle East crisis.
Lord Richard Walker, the CEO of Iceland, has urged government officials to take action due to the surge in fuel prices driven by the conflict in Iran, adding further pressure on the authorities.
Chancellor Rachel Reeves had previously prolonged the 5p per liter reduction in fuel duty, initially introduced following Russia’s invasion of Ukraine in 2022, during last year’s Budget until August 2026. However, this reduction is set to expire in September and will be phased out gradually by March 2027.
Lord Walker emphasized the importance of discussing the extension or expansion of the 5p fuel duty cut in light of the current circumstances. Comparing it to Australia’s recent 14p per liter fuel tax reduction, he highlighted the necessity for potential adjustments.
In response to Tory peer Lord Simon Wolfson’s remarks regarding the government benefiting financially from the Iran conflict, Lord Walker agreed that adjustments in fuel duty could alleviate immediate cost burdens on businesses and consumers.
Prime Minister and Chancellor have indicated that they are closely monitoring the situation amidst the escalating US-Israeli conflict with Iran and the disruption in the Strait of Hormuz, a crucial oil shipping route. Rachel Reeves affirmed the government’s readiness for any outcome and emphasized efforts to secure oil and gas supplies to stabilize prices.
Additionally, Ms. Reeves rejected the notion of a “tax windfall” for the Treasury during the fuel price surge, while reports suggested increased revenue through oil and gas-related taxes.
Amidst rising government borrowing costs, the Chancellor dismissed the idea of a fiscal windfall due to the economic impacts of the conflict initiated by Trump.
A Treasury spokesperson reiterated the government’s commitment to supporting working individuals responsibly in a volatile global economy. They highlighted the freeze on fuel duty until September and the implementation of targeted aid for those facing higher heating oil costs.
Choose Daily Mirror as a ‘Preferred Source’ on Google News for quick access to the news you value.
