In Chancellor Rachel Reeves’ Spring Statement 2026, there was no mention of increasing fuel prices, despite the industry calling for it to be addressed.
Reeves referenced her extension of the Fuel Duty freeze, announced in the Autumn Budget in 2025, but did not suggest that this would be extended further.
Liberal Democrat Spokesperson Daisy Cooper said in her response: “Trump’s illegal actions in Iran this weekend will be felt in people’s pockets right here, in Britain, with the cost of fuel and food set to rise.
“The Chancellor could have used today’s Spring Statement to scrap the Fuel Duty hike, which is due this September. Why didn’t she?”
Analysts found that the price of oil is likely to increase due to the tensions in the Middle East, which will affect the pump prices for UK drivers.
Howard Cox, founder of FairFuelUK, said: “In light of the ongoing crisis in the Middle East, Rachel Reeves must declare in her Spring Statement that Fuel Duty will remain frozen for the duration of her Parliament and cancel any planned increases in the Autumn Budget.”
In response to the budget, Cox added: “”This was a missed economic growth opportunity for the Chancellor amid a new damaging oil crisis.
“With refineries, oil tankers, and the Straits of Hormuz being targeted, oil prices will continue to climb relentlessly.
“A barrel of crude is, at the time of writing, already over $84 (13:00 March 3rd). This will add 5-10p per litre in the next week or so.
“A sustained rise in Brent to $100 could add 10-20p per litre to petrol and diesel within weeks, based on historical patterns—similar to the surges seen in 2022 when oil hit $120 amid the Ukraine invasion.
“For over two decades, our clueless politicians have not planned to be self-sufficient in oil and gas production.
“They should be held to account for making the UK reliant on imports. FairFuelUK continues to call on Rachel Reeves to cut Fuel Duty, but at the very least keep it frozen for the lifetime of this parliament.
“Independent retailers are held to ransom by ruthless cash-grabbing wholesalers and the big brands.
“So, I call for FairFuelUK’s PumpWatch to be rigorously and legally implemented to prevent the inevitable opportunistic profiteering.
“We will see punitive hikes, as the secret pump pricing algorithm that makes no logical sense to anyone will be ruthlessly exploited yet again by the fuel supply chain.”
However, some in the industry like the RAC have said that the oil prices would have to rise significantly for it to make an impact on the UK driver.
Simon Williams, head of policy at RAC, said: “Regardless of the current situation, petrol rose by a penny a litre in February and is likely to go up by another penny in the next week or so to an average of 134p a litre.”
In response to the statement, Williams added: “We really shouldn’t see a shock jump in prices at the pumps as wholesale fuel costs had only been rising gradually in recent weeks.
“Even though the price of dated Brent crude rose by $5 a barrel yesterday to $78, the impact of this shouldn’t be felt for over a week.
“But knowing the tendency for price increases to be passed on far more quickly than cuts, on behalf of drivers we urge retailers not to put up the price of fuel they’ve already got in forecourt tanks and reflect any increases in wholesale fuel fairly on the forecourt.”
Nishith Rastogi, founder and CEO at Locus, said: “From a logistics perspective, the Spring Statement leaves operators facing largely unchanged cost conditions.
“Growth remains modest and there has been no additional support on transport costs, while the 5p fuel duty cut runs to the end of August with staged increases scheduled from September.
“At the same time, oil price volatility is pushing diesel higher. That combination keeps fuel as the most sensitive line in fleet economics.
“When volumes are steady rather than rising, increases in fuel feed directly into cost per mile and contract margin.
“Operators cannot rely on additional demand to dilute that movement, so route viability and pricing discipline come under closer scrutiny through the second half of the year.”
