Government tipped to raise petrol and diesel fuel duty to 'plug funding gap'

could raise and fuel duty prices soon to help "plug the funding gap", according to electric vehicle experts. Specialists at predicted Labour could make savings by "getting rid of" fuel duty freezes.

Rates have not increased for 13 years with motorists enjoying hefty savings at the fuel pumps since.

Officials on both sides of the political spectrum have held off raising the rates despite the move likely to secure millions of pounds in extra revenues for the Treasury.

It could make fuel duty a major issue in the summer in the run-up to Labour's second Autumn Budget by the end of the year.

said: "Fuel tax has been frozen since 2011, at an estimated total cost to the treasury of £66 billion, keeping fuel cheaper and carbon dioxide production high.

Transport is the UK's number 1 emitter of the greenhouse gas, making this a costly, unhealthy and environmentally damaging policy.

"The government could help plug the funding gap that has been a key message over the past month or so by getting rid of this freeze.

"Not to mention the cost to the NHS of poor air quality and extra funding freed up by ending this subsidy.

"Introducing a [levy] on aviation fuel would also increase the tax take and help tackle climate change. The question around fuel tax is yet to be addressed."

There was speculation Labour by around

This could have added up to £175 extra per year on fuel bills in a major blow for cash-strapped road users.

However, Chancellor Rachel Reeves shocked many for an extra 12 months.

It means fuel duty remains at the current 52.95p rate with the charge levied at petrol and diesel directly at the pumps.

This included maintaining the 5p cut on fuel duty that the Conservatives introduced back in 2022.

In a statement to Express.co.uk, HM Treasury said: "We do not comment on speculation around future changes to tax policy. Our plan for change is putting more money in the pockets of working people.

"We extended the fuel duty cut, saving drivers £3 billion this year, and increased the National Living Wage giving a pay boost of up to £1,400 a year for millions of eligible workers".