FairFuelUK calls for fuel duty cut as retailer margins rise while motorists “hammered”

FairFuelUK has called for an immediate cut in fuel duty in the 28th October Budget, claiming fuel retailer margins have risen substantially since 2021 while motorists face higher pump prices.

Analysis by the campaign group found petrol margins, after removing duty and VAT, increased from 3% in 2021 to 18% in 2026, while diesel margins rose from 3% to 20% over the same period.

FairFuelUK said margins before 2021 ranged between -10% and 3% for both fuels, while diesel margins have remained higher than petrol every year since 2022.

The group also argued that movements in crude oil prices do not fully account for the increase.

Its analysis found that Brent crude prices fell 16.9% in 2023 and 2.9% in 2024, and remain 20% below their 2022 peak.

FairFuelUK estimated that higher margins mean motorists are paying around £10 more for a petrol fill-up and £15 more for diesel compared with pre-2021 margin levels.

It also estimated that the Treasury has received an additional £1.35bn in VAT during the Middle East crisis as a result of higher pump prices.

Ahead of the Budget, FairFuelUK has called for a cut in fuel duty, or at minimum, a freeze for the lifetime of the Parliament.