Muted welcome for delay in rising fuel duty as families and farmers suffer now from Iran war

The planned increase in fuel duty has been postponed to help motorists faced with rising pump prices as a result of the war in Iran.

Prime Minister Sir Keir Starmer told MPs the 5p per litre fuel duty cut introduced by the Conservative government in March 2022 would be extended for the rest of the year.

That means the rate will remain nearly 53p per litre.

Rates were previously planned to increase by 1p per litre on September 1, with a pair of 2p per litre rises on December 1 this year and March 1 next year.

Farmer, rail freight and other users of red diesel will also see their fuel duty cut from 10.18p to 6.48p per litre from June 15 until the end of the year.

Iran’s restrictions on tankers passing through the Strait of Hormuz means the average price of a litre of petrol and diesel at UK forecourts is 26p and 44p respectively more expensive than before the conflict started on February 28.

Sir Keir said: “Families across the United Kingdom are facing impacts of a war that we did not choose.”

He said: “This is not our war, but while the parties opposite wanted to jump into it, Labour will always protect working people.”

But Michelle Kelly, Head of Transport Policy at the Consumer Council for Northern Ireland, said petrol and diesel prices are still much higher than before the war.

She welcomed the decision to postpone the fuel duty rise until next year, but pointed out the very real pressures now.

“While this delay will be welcome news for consumers, our latest Fuel Price Checker figures show that consumers are currently paying, on average, around £11 more to fill a 40-litre tank of unleaded petrol and around £18 more for diesel compared to prices on 26 February 2026,” she said.

The Ulster Farmers’ Union especially welcomed the duty cut on red diesel. President John McLenaghan said: “Red diesel is not a discretionary cost for farmers; it is an essential input used every day to produce food, manage land, keep farm businesses operating, and ultimately deliver high quality, affordable food for consumers.”

He added: This measure is a welcome first step and recognises the immediate pressure that rising fuel costs are placing on agricultural businesses. “However, this cannot be the end of Government action. Fuel pressures and wider input costs are already influencing production decisions on farms across Northern Ireland, and further targeted support is needed to prevent serious consequences for domestic food production.”

Alliance Lagan Valley MP Sorcha Eastwood also welcomed the announcement – but warned it still falls far short of what is needed.

"Whilst this freeze will undoubtedly be welcome to the countless people up and down the UK right now who are worried about how they’re going to pay for fuel, this is the bare minimum and the government knows it,” she said.

"Northern Ireland remains uniquely exposed – our reliance on home heating oil, high rates of fuel poverty and poor public transport links mean we feel these pressures more acutely than most."