Guide

Fuel duty: how much tax is in a litre of petrol and diesel?

How much of the petrol and diesel price is tax, when duty goes up, and what each rise costs you.

By Forecourt Prices Published Updated

The 5p fuel duty cut ends on 31 December 2026: duty goes from 52.95p to 55.95p a litre on 1 January and 57.95p on 1 March[1].

Tax in a litre of petrol and diesel

Fuel duty 52.95p

a litre, on petrol and diesel alike[2]

Tax in a litre of petrol 81.57p

48% of the 171.7p UK average for E10

Tax in a litre of diesel 86.02p

43% of the 198.4p UK average for B7

Tax on a 55-litre fill £44.86

of petrol, or £47.31 of diesel

Today's UK averages come from 6,893 forecourts with an E10 price and 6,341 with a B7 price in our price data. We update it every 15 minutes. See how we work them out.

Updated 6:47am on 2 November.

The short answer

Today the average price of petrol (E10) is 171.7p a litre. Of that, 52.95p is fuel duty and 28.62p VAT, so 48% is tax. For diesel (B7) at 198.4p it is 43%. Duty goes up 3p on 1 January 2027 and 2p more on 1 March[1]. The Budget on 28 October may have changed this, and we are checking.

What's changing and what it costs you

Duty is due to change on 1 January 2027 and 1 March 2027[1]. VAT is charged on top of the duty[2], so each 1p of duty adds 1.2p at the pump.

Fuel duty a litre from today, and what each rise adds with VAT
When Duty a litre Rise With VAT On a 55-litre fill 8,000 miles a year 12,000 miles a year
Today 52.95p
From 1 January 2027 55.95p +3.00p +3.60p +£1.98 about £30 petrol about £25 diesel about £45 petrol about £40 diesel
From 1 March 2027 57.95p +2.00p +2.40p +£1.32 about £20 petrol about £20 diesel about £30 petrol about £25 diesel

Together the rises add 5p a litre, or 6p with VAT. That is £3.30 more on a 55-litre fill than today. Over 8,000 miles a year it is about £50 in a petrol car, or about £45 in a diesel.

The yearly figures are for a petrol car at 44.6 mpg and a diesel at 48.4 mpg, to the nearest £5.

Budget watch: what others are saying

  • AA, 12 October 2026: The AA said it had asked the Chancellor in writing to keep the 5p cut and cut duty by another 5p a litre. Edmund King said: "Drivers need the Chancellor to put the brakes on rising fuel costs."[3]
  • RAC, 9 October 2026: The RAC's Simon Williams said the government could extend and increase the duty cut, or reduce VAT. Williams said drivers "will be looking to this month's Budget for some much-needed relief"[4].
  • BBC, 28 September 2026: The BBC reported that John Healey told it the Budget was the "place" and "time" to deal with rising fuel costs. The Chancellor would not say whether the freeze would be extended again[5].
  • BBC, 20 September 2026: The BBC reported that the Liberal Democrat leader, Ed Davey, called for duty to be cut by 10p a litre until Christmas. Davey also called for the January rise to be scrapped[6].
  • RAC, 15 September 2026: The RAC's Simon Williams said there is "a strong argument" for leaving duty at its current level, at least until the end of the Parliament[7].
  • Resolution Foundation, 20 May 2026: The Resolution Foundation said the May extension would mainly help better-off households. It said the richest fifth would gain more than twice as much as the poorest fifth[8].

Last updated 13 October 2026.

How fuel duty works

Fuel duty is a set amount on every litre. Petrol, diesel, biodiesel and bioethanol all pay the same main rate[2].

VAT at 20% is then charged on the fuel and the duty together[2]. HMRC values goods that carry excise duty for VAT with the duty included[9].

The duty falls due when fuel leaves a registered warehouse for use in the UK. The business moving it out accounts for the duty then[10].

HMRC pays what it collects into the Consolidated Fund, the government's general account[11].

Because the duty is the same on every litre, it is a smaller share of a dearer one. Today it is 27% of the average diesel price and 31% of petrol.

Take today's average petrol price of 171.7p. Its 28.62p of VAT includes 10.59p charged on the duty itself. So with VAT, duty adds 63.54p to every litre.

Where the rest of the price goes

Duty and VAT take 81.57p of today's 171.7p average petrol price. That leaves 90.13p for the fuel and the retailer. For diesel at 198.4p it leaves 112.38p.

What's left after duty and VAT pays for the fuel itself and the retailer's spread. The CMA says that spread covers the retailer's costs as well as its profit. It names transport, wages and utilities among those costs[12].

The UK average price a litre split into the fuel and retailer's share, fuel duty and VAT.
Per litre UK average Fuel and retailer Fuel duty VAT
Petrol (E10) 171.7p 90.13p 52.95p 28.62p
Diesel (B7) 198.4p 112.38p 52.95p 33.07p

UK averages from our price data, with the duty in force that day.

What duty and VAT come to on a gallon, and what a gallon costs.

Who pays it, and the rates for other fuels

Petrol, diesel, biodiesel and bioethanol pay the main rate. LPG and natural gas used as road fuel are taxed by the kilogram[2].

Rebated fuels such as red diesel pay a much lower rate[1]. Only excepted vehicles and machines may use red diesel, for uses such as farming, forestry and golf courses[13].

Electric cars pay no fuel duty[14]. GOV.UK says that from 1 April 2028 electric cars will pay 3p a mile, and plug-in hybrids 1.5p a mile[15].

Fuel retailers on some islands and in some remote mainland postcodes get 5p a litre off the duty on petrol and diesel. The areas include the Hebrides, the Northern Isles, the Clyde islands and the Isles of Scilly[16].

Fuel duty rates by fuel
Fuel Duty When
Petrol, diesel, biodiesel and bioethanol[2] 52.95p per litre Until 31 December 2026
Petrol, diesel, biodiesel and bioethanol[1] 55.95p per litre 1 January to 28 February 2027
Petrol, diesel, biodiesel and bioethanol[1] 57.95p per litre From 1 March 2027
Liquefied petroleum gas (LPG)[1] 28.88p per kg Until 31 December 2026
Liquefied petroleum gas (LPG)[1] 30.52p per kg 1 January to 28 February 2027
Liquefied petroleum gas (LPG)[1] 31.61p per kg From 1 March 2027
Natural gas used as road fuel[1] 22.57p per kg Until 31 December 2026
Natural gas used as road fuel[1] 23.85p per kg 1 January to 28 February 2027
Natural gas used as road fuel[1] 24.70p per kg From 1 March 2027
Red diesel (rebated gas oil)[1] 6.48p per litre Until 31 December 2026
Red diesel (rebated gas oil)[1] 10.76p per litre 1 January to 28 February 2027
Red diesel (rebated gas oil)[1] 11.14p per litre From 1 March 2027
Fuel oil burned in a furnace or used for heating[2] 9.78p per litre Now

Fuel duty rates over time

The main rate of fuel duty over time
When Rate a litre What happened
30 April 1909 3d a gallon A duty on motor spirit begins, at threepence a gallon on imports[17].
16 March 1993 25.76p Unleaded petrol pays 25.76p a litre and diesel 25.14p[18].
30 November 1993 28.32p Unleaded petrol pays 28.32p a litre and diesel 27.70p[18].
23 March 2011 57.95p Budget 2011 cancels the fuel duty escalator then in place. It was due to raise duty by RPI inflation plus 1p a litre each year to 2014-15. The rate is cut by 1p[19][18].
2011-12 to 2026 The main rate is not raised[20]. It stays at 52.95p to 31 December 2026[1].
23 March 2022 52.95p The Spring Statement cuts duty on petrol and diesel by 5p a litre for 12 months, from 6pm on 23 March[21][18].
March 2023 Spring Budget 2023 extends the 5p cut[22].
March 2024 Spring Budget 2024 keeps the cut for another 12 months, to March 2025[22].
Autumn 2024 Autumn Budget 2024 extends the cut to 22 March 2026, and the planned inflation rise for 2025-26 does not take place[23].
November 2025 Budget 2025 keeps the cut to the end of August 2026. It plans rises of 1p on 1 September, 2p on 1 December and 2p on 1 March 2027. Duty is then to rise with RPI from April 2027[14].
20 May 2026 The government extends the full 5p cut for the rest of 2026[24].
22 May 2026 GOV.UK publishes amended rates. The 52.95p rate stays to 31 December 2026. Duty then goes to 55.95p on 1 January 2027 and 57.95p on 1 March 2027. The government said it would confirm final rates at Budget 2026[1].

How tax's share of the price has moved

Tax's share of the average petrol (E10) and diesel (B7) price across UK forecourts each day since 7 February 2026.

Tax's share of the average petrol (E10) and diesel (B7) price across UK forecourts each day since 7 February 2026. The sentences under the chart say what it shows.
  • On 2 November, tax was 47.5% of the average petrol price and 43.4% of diesel.
  • For petrol, the highest share was 56.8%, on 9 February. The lowest was 46.9%, on 4 October.
  • For diesel, the highest share was 54.2%, on 7 February. The lowest was 43.1%, on 4 October.

Figures to 2 November 2026.

Daily UK averages from our price data, split with the duty in force each day.

How the UK compares

Revenue, Ireland's tax authority, lists mineral oil tax of €502.88 per 1,000 litres of petrol and €371.85 for diesel. Both include carbon tax, and apply from 15 April 2026[25].

Ireland taxes diesel less than petrol[25]. The UK charges the same duty on both[2]. VAT on motor fuel in Ireland is 23%[26].

The European Commission's Weekly Oil Bulletin of 8 October 2026 covers EU countries only, so the UK isn't in it. Its excise on petrol per 1,000 litres was €422.69 in Spain, €690.20 in France and €840.00 in the Netherlands[26].

For the UK side, duty of 52.95p a litre is £529.50 per 1,000 litres, on petrol and diesel alike. We haven't converted the euro figures to pounds.

What fuel duty raises

The OBR expected fuel duty to raise £24 billion in 2025-26, or 0.8% of GDP[20].

Its March 2026 forecast had receipts of £24.6 billion in 2026-27, rising to £26.6 billion in 2028-29 and falling to £25.7 billion by 2030-31. The OBR says the fall comes as the rising share of electric vehicles outweighs the assumed rises in the rate[20].

That forecast came before the May 2026 extension. It assumed the first rise would come in September 2026[20].

In November 2025 the OBR said "the total cost of fuel duty freezes from 2010-11 to 2026-27 has risen to £120 billion". It measures that against the stated policy of raising duty with RPI inflation[27].

Common questions about fuel duty

What is the fuel duty in the UK?

Fuel duty is 52.95p a litre on petrol, diesel, biodiesel and bioethanol[2]. VAT at 20% is charged on top[2].

Is UK fuel duty going up?

Yes. Duty goes from 52.95p to 55.95p a litre on 1 January 2027 and 57.95p on 1 March 2027[1]. With VAT, that adds £3.30 to a 55-litre fill. The Budget on 28 October may have changed this, and we are checking.

Is VAT charged on fuel duty?

Yes. VAT at 20% is charged on the fuel and the duty together[2]. At 52.95p a litre, that is 10.59p of VAT on the duty alone.

How much of the price of petrol is tax?

Today tax is 48% of the average petrol price of 171.7p. That is 52.95p of duty and 28.62p of VAT. For diesel at 198.4p it is 43%.

Is fuel duty the same on diesel as on petrol?

Yes. Petrol and diesel pay the same main rate, 52.95p a litre[2]. Diesel costs more at the pump, so the duty is a smaller share of its price.

Why is fuel duty so high in the UK?

Fuel duty is a set amount on every litre, and VAT at 20% is charged on the fuel and the duty together[2]. The main rate has not been raised since 2011-12[20]. Today the two make up 48% of the average petrol price and 43% of diesel.

How much does the UK make from fuel duty?

The OBR expected fuel duty to raise £24 billion in 2025-26, or 0.8% of GDP. Its March 2026 forecast, made before the May extension, had £24.6 billion for 2026-27[20].

Do electric cars pay fuel duty?

No. Electric cars pay no fuel duty[14]. GOV.UK says that from 1 April 2028 electric cars will pay 3p a mile, and plug-in hybrids 1.5p a mile[15].

What is fuel duty used for?

HMRC pays what it collects into the Consolidated Fund, the government's general account[11]. When motor spirit duty began in 1909, the law paid it into a road improvement account[28].

What is the duty on red diesel?

Red diesel pays a rebated rate of 6.48p a litre until 31 December 2026. It then goes to 10.76p on 1 January 2027 and 11.14p on 1 March 2027[1].

What is the tax on petrol in Ireland?

Revenue lists mineral oil tax of €502.88 per 1,000 litres of petrol, including carbon tax, from 15 April 2026[25]. VAT on motor fuel in Ireland is 23%[26]. We haven't compared pump prices in the two countries.

Sources and method

  1. GOV.UK: Amended Fuel Duty rates: 2026 to 2027, checked 13 October 2026.
  2. GOV.UK: Tax on shopping and services, Fuel Duty, checked 13 October 2026.
  3. The AA: newsroom, 12 October 2026, checked 13 October 2026.
  4. RAC: Diesel dips below £2 a litre, checked 13 October 2026.
  5. BBC News: What is the Budget and what could be in it?, checked 13 October 2026.
  6. BBC News, 20 September 2026, checked 13 October 2026.
  7. RAC: press release, 15 September 2026, checked 13 October 2026.
  8. Resolution Foundation: press release, 20 May 2026, checked 13 October 2026.
  9. GOV.UK: VAT guide (VAT Notice 700), section 7.7, checked 13 October 2026.
  10. HMRC: Hydrocarbon Oils Bulletin, background and references, checked 13 October 2026.
  11. legislation.gov.uk: Commissioners for Revenue and Customs Act 2005, section 44, checked 13 October 2026.
  12. CMA: Road fuel review, checked 13 October 2026.
  13. GOV.UK: Using rebated fuels in vehicles and machines (Excise Notice 75), checked 13 October 2026.
  14. HM Treasury: Budget 2025, checked 13 October 2026.
  15. GOV.UK: Electric Vehicle Excise Duty (eVED), checked 13 October 2026.
  16. GOV.UK: Rural duty relief scheme (Notice 2001), checked 13 October 2026.
  17. legislation.gov.uk: Finance (1909-10) Act 1910, section 84, checked 13 October 2026.
  18. HMRC: Historical hydrocarbon oils duty rates, checked 13 October 2026.
  19. OBR: Fuel duties, checked 13 October 2026.
  20. OBR: Economic and fiscal outlook, March 2026, checked 13 October 2026.
  21. HM Treasury: Spring Statement 2022, checked 13 October 2026.
  22. HMRC: Fuel duty, extending the temporary cut in rates to March 2025, checked 13 October 2026.
  23. HMRC: Extension to the cut in fuel duty rates to March 2026, checked 13 October 2026.
  24. HM Treasury: Chancellor protects drivers and businesses from rising fuel costs, checked 13 October 2026.
  25. Revenue: Mineral Oil Tax rates, checked 13 October 2026.
  26. European Commission: Weekly Oil Bulletin, duties and taxes, 8 October 2026, checked 13 October 2026.
  27. OBR: Economic and fiscal outlook, November 2025, checked 13 October 2026.
  28. legislation.gov.uk: Finance (1909-10) Act 1910, section 90, checked 13 October 2026.

Our figures: each UK average is over every forecourt's latest price reported in the last 30 days, leaving out prices far from what the rest of the UK charges. Each split uses the duty rate in force on the day of the prices, and VAT at 20%. How we work out the figures