Labour Minister Stands Firm on Fuel Duty Increase
Education Secretary Bridget Phillipson has firmly rejected calls to cancel the upcoming fuel duty hike, stating there is "no need to take action" to provide relief for petrol retailers. The controversial increase is scheduled to take effect later this year, marking the first rise in fuel duty in fifteen years.
Government's Position on Fuel Duty
Phillipson emphasized that the government will "take a view closer to the time" regarding whether to proceed with the planned increase. The current main rate of fuel duty stands at 52.95p per litre, which includes a temporary 5p reduction implemented in 2022. This reduction is set to be reversed in stages beginning in September 2026.
"I'm not going to commit months ahead of time when there isn't a need to act right now, because those protections remain in place," Phillipson told Sky News during a Sunday interview. The fuel duty has been frozen since 2011, with the exception of the 5p cut in 2022, making the upcoming increase particularly significant.
Industry Reactions and Political Backlash
The announcement has sparked considerable backlash from opposition parties, with Conservatives, Reform UK, and Liberal Democrats all urging the government to reverse the decision. Meanwhile, the industry awaits a targeted support plan from Chancellor Rachel Reeves to assist the poorest households in coping with surging energy prices following the outbreak of war in Iran.
Reeves has also pledged to address "profiteering" among retailers during the energy crisis, though this initiative has faced criticism from business leaders. Asda chairman Allan Leighton dismissed the profiteering claims as having "zero credibility" and labeled the campaign a "waste of time." He added, "Thankfully we've all got better things to do than play that particular political shenanigan game."
Conservative Calls for North Sea Drilling
Conservative MP Kemi Badenoch has intensified calls for the government to authorize drilling in the North Sea rather than increasing fuel duty. Badenoch argued that this approach would enhance energy security, economic stability, and national security.
"Rushing out to say the Government should be rationing fuel, that's not the first thing I would be doing," Badenoch stated. "The first thing they should do is start drilling our own oil and gas in the North Sea. It's important for our energy security, our economic security, our national security – and they're not doing that."
In response, Prime Minister Keir Starmer clarified during Prime Minister's Questions that he lacks the legal authority to approve new exploration of North Sea oil and gas fields. This decision rests with Net Zero Secretary Ed Miliband. Starmer explained, "It's absolutely clear that the quasi-judicial process lies with the secretary of state." He further noted, "In the last four weeks, because we are on a fossil fuel rollercoaster, everyone is being held to ransom."
