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What is fuel duty?

Fuel duty is a tax included in the price of petrol and diesel, currently 52.95p per litre, which helps fund public services and road infrastructure. It's a significant source of government income, but as electric vehicle adoption grows, this revenue stream is shrinking, prompting the search for alternatives like pay-per-mile.

Stories that explain this

UK to introduce pay-per-mile tax for electric vehicles from 2028 Filling up stays painful as petrol averages 161p a litre

Related explainers

Why are fuel prices rising? How much more does fuel cost? Who sets UK fuel prices? What is the Hormuz crisis? What will I pay? What's the global challenge? Why tax EVs now? Will this affect my decision?

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