UK Keeps Fuel Tax Hike Under Review Amid Iran Conflict

Published: March 12, 2026
The English Chronicle Desk. The English Chronicle Online

Prime Minister Sir Keir Starmer has indicated that the planned increase in fuel duty later this year will be kept under review in light of the ongoing Middle East conflict involving Iran, as volatile global oil markets continue to push up prices and fuel costs at the pump. At Prime Minister’s Questions in the House of Commons, Starmer was pressed by opposition MPs on whether the government would proceed with a scheduled rise in fuel tax from September. He stressed that while the current 5p duty cut remains frozen until then, the situation will be monitored closely as events unfold in Iran and broader markets.

The planned increase forms part of a phased removal of the fuel duty reduction introduced after Russia’s 2022 invasion of Ukraine, but spiralling oil prices linked to the US‑Israel‑Iran conflict have intensified pressure on UK households already squeezed by energy costs. Starmer told MPs fuel duty would remain on hold until autumn and that ministers would “look carefully at the situation” in assessing whether to implement the hike as initially scheduled.

Chancellor Rachel Reeves has framed the duty rise as part of routine fiscal policy, arguing it is too early to decide on permanent changes and that market conditions should guide pricing. She has also highlighted government efforts to protect consumers, including capping energy bills and engaging with international partners on strategic oil reserves. Critics from opposition parties and campaign groups, however, have called for the hike to be scrapped entirely, saying it would compound cost‑of‑living pressures at a sensitive time.

The government’s position reflects broader economic uncertainty as the conflict in the Middle East affects global supply chains and energy prices. Rising crude costs have sparked debates over tax policy, inflation and support measures for households and businesses. Starmer’s comment that the duty decision will remain under review underscores the government’s cautious approach amid unpredictable oil markets and ongoing geopolitical tensions.

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