Relief for motorists as Chancellor 'admits planned fuel duty hikes can't go ahead' amid Middle East crisis - with Budget set to maintain freeze

Published: 06:20 EDT, 27 October 2026 | Updated: 06:27 EDT, 27 October 2026 Chancellor John Healey is expected to freeze fuel duty and keep the 5p discount at his Budget tomorrow amid soaring pump prices.Drivers are set to be given some relief from the hammering they have faced due to the Iran war when Mr Healey unveils his fiscal package.Fuel duty was due to be unfrozen for the first time in 16 years, but Mr Healey is thought to have bowed to pressure to now keep it at 53p per litre.The 5p cut first introduced in 2022 amid the Ukraine crisis, which was only supposed to last a year, is also expected to be extended again.Petrol and diesel prices have continued to soar this year, as a result of the Middle East conflict and ongoing disruption from Russia's invasion of Ukraine. Diesel pushed past the record price of £2 a litre earlier this month, while average unleaded petrol prices stand at £1.75 a litre, their highest in more than four years. Chancellor John Healey is expected to freeze fuel duty and keep the 5p discount at his Budget tomorrow amid soaring pump prices Petrol and diesel prices have continued to soar this year, as a result of the Middle East conflict and ongoing disruption from Russia's invasion of UkraineAlmost two-thirds (65 per cent) of 1,206 motorists surveyed by the RAC said they're cutting back on other spending because of the high cost of fuel, up from 61 per cent in April.Almost half (47 per cent) said that they're struggling to cope with costs now, up from 39 per cent in April.RAC senior policy officer Rod Dennis said: 'It's easy to forget that fuel duty is already lower than it was several years ago, given it was cut by 5p in the early days of the Ukraine war.'But this hasn't stopped prices spiralling this year as a result of the ongoing conflicts in the Middle East.'An end to hostilities and a lower oil price would deliver the greatest relief at the pumps, but this isn't something that's ultimately in the UK's control.'The extent to which drivers are taxed, however, most certainly is.'Meanwhile, a new analysis by the Countryside Alliance found people living in the countryside spend around £465 a year more to fill up at the pumps than those in towns and cities.The research found the average rural resident spends around £1,300 a year on petrol, compared with £835 for someone in a town or city.That is almost £9 a week more, with rural families, farmers, and businesses bearing the brunt.Tim Bonner, chief executive of the Countryside Alliance, said: 'Anyone who lives in rural communities knows a car is a necessity simply to get to the nearest supermarket, GP surgery, school, or work.'Rural residents have to drive further and pay more for every litre, which is why they are spending nearly £500 a year more than people in towns and cities.'With diesel now above £2 a litre, simply holding the 5p cut will not be enough. The Chancellor should make it permanent and give drivers immediate relief with a temporary cut to VAT on fuel.'If the Government wants growth in rural postcodes as well as urban ones, this Budget is the place to show it.'In his Budget tomorrow, Mr Healey is also expected to make permanent a higher tax-free mileage allowance of 55p.The Chancellor is set to lock in the 55p mileage rate for those who have to drive for work, for the first 10,000 miles.Rates above that will be raised from 25p to 35p, with the Government hoping the overall package will help a total of three million employees and self-employed people.Mr Healey said: 'Conflict in the Middle East and Europe is hitting families here at home through higher everyday costs.'We can't control global events, but we can act where we can make a difference.'