Reeves on Soaring Fuel Prices, Duty Cut Calls 2026

Key Points

• Chancellor Rachel Reeves spoke in Parliament on the soaring cost of petrol and diesel amid global oil fears from Middle East tensions.
• Brent Crude Oil prices peaked at around $120 (£89) per barrel, pushing up wholesale petrol and diesel prices.
• Current UK average prices stand at 137.51p per litre for petrol and £1.51 for diesel, with RAC estimating further rises.
• RAC’s Simon Williams warned petrol could hit 140p soon, diesel 160p, and up to 150p/180p if oil sustains at $100.
• Reeves extended the 5p per litre fuel duty cut for five more months in November, freezing it against inflation; petrol is 8p cheaper than under prior plans, rising to 11p next month.
• Fuel Finder scheme is advancing, with 90% of retailers participating; drivers could save 1-6p per litre; integration with map apps accelerated.
• Reeves to meet forecourt operators and will call out non-compliant retailers; CMA tasked to watch for profiteering.
• She stressed rapid Middle East de-escalation for lower prices and monitoring; separate talks on heating oil for rural/NI MPs.
• Calls for duty cuts from FairFuelUK’s Howard Cox, who predicted 20p/litre hikes adding £10 per fill-up; past polls show 45.7% want 20p cut.
• Barclays warns Brent could test $120/bbl or $150 in tail-risk if tensions persist, bigger risks than Russia-Ukraine.

London (Britain Today News) March 9, 2026 – Chancellor Rachel Reeves addressed Parliament on soaring petrol and diesel prices driven by Middle East tensions, announcing plans to push measures slashing pump costs while Brent Crude hit $120 per barrel. Drivers now pay 137.51p per litre for petrol and nearly £1.51 for diesel, with the RAC forecasting rises to 140p and 160p soon. Reeves highlighted her November extension of the 5p fuel duty cut for five months and inflation freeze, making petrol 8p cheaper than inherited plans—11p next month.

What Did Rachel Reeves Announce on Fuel Duty?

As reported by Felix Reeves of GB News, Chancellor Rachel Reeves stated in Parliament:

“In November, I extended the 5p per litre cut in fuel duty for a further five months and ensured that fuel duty will not increase in line with inflation this year.”

She added:

“Petrol is more than 8p per litre cheaper today than it would have been under the plans that we inherited at the election. And that discount increases to 11p a litre next month once that extension takes effect.”

The extension, confirmed in the Autumn Budget, costs £2.4 billion through 2026-2028 per the Office for Budget Responsibility. Despite this, critics like FairFuelUK labelled recent statements a “kick in the teeth” for sticking to reversing the cut post-August.

Why Are Petrol and Diesel Prices Soaring?

Middle East conflicts have spiked Brent Crude to $120/bbl, with Barclays warning of $150 in worst cases if disruptions persist at the Strait of Hormuz—risks exceeding Russia-Ukraine levels. RAC data shows petrol up 5p to 137.5p and diesel 9p to 151p since February 28 crisis start.

RAC head of policy Simon Williams said:

“Average petrol and diesel prices have rocketed in the last week and are unfortunately likely to keep on rising, so the situation for UK drivers is looking increasingly bleak.”

He projected unleaded to 140p next week, diesel to 160p at least, and 150p/180p at sustained $100 oil—a three-year diesel high.

What Is the Fuel Finder Scheme and How Does It Help?

The Labour MP for Leeds West and Pudsey emphasised the Government’s Fuel Finder scheme, now “delivered” with nearly 90% of petrol retailers participating. Government forecasts indicate drivers could save 1-6p per litre.

As per Felix Reeves of GB News, Reeves said:

“Last week, I instructed my officials to accelerate the integration of the cheaper fuel finder with map applications.”

She will meet forecourt operators this week and

“not hesitate to call out retailers that fail to provide data to the Fuel Finder.”

The Competition and Markets Authority (CMA) is monitoring to prevent profiteering.

Who Is Calling for a Fuel Duty Cut?

FairFuelUK founder Howard Cox told GB News, as reported by Felix Reeves:

“Well, I predicted last week when I was on your show that we’re going to hit over $100 (£75) and that will put something like 20p per litre onto a filling up. So the average family car will have to spend something like £10 more to fill up their car.”

FairFuelUK urged Reeves to reduce or freeze duty for the parliamentary term.

A FairFuelUK survey of over 12,000 businesses showed 55% would cut costs if the cut ends; polls indicate 45.7% of drivers want a 20p cut, 25% a freeze. The 5p cut expires March 22, 2026.

What Are the Latest UK Pump Prices?

RAC Fuel Watch reports current averages at 137.51p for petrol and £1.51 for diesel, likely to rise. Simon Williams of RAC noted:

“Unleaded is almost certainly going to reach an average of 140p in the next week or so while diesel looks highly likely to climb to at least 160p a litre.”

Earlier March data showed petrol at 132.86p and diesel 142.44p, with rises accelerating. Supermarkets like Asda and Morrisons offered under £1.30 petrol recently, but hikes erase gains.

How Is the Government Responding to Oil Price Spikes?

Reeves stressed: rapid de-escalation in the Middle East is key to low prices, per Reuters reporting. She told MPs she will monitor prices and instructed regulators on essentials like fuel.

For heating oil users, Reeves said:

“I recognise that households who use heating oil face unique challenges, and so I have asked the Financial Secretary to the Treasury to lead discussions with officials and with rural and Northern Irish MPs to explore further action that we can take, and those meetings will happen on Wednesday,”

as covered by The Mirror.

What Do Experts Predict for Future Prices?

Barclays analysts stated:

“Brent crude could potentially test $120 a barrel if the Middle East conflict persists for another couple of weeks… fundamentals are stronger and risks are bigger than the Russia-Ukraine conflict.”

Tail-risk sees $150/bbl by month-end.

RAC’s Williams advised:

“We encourage drivers to continue filling up as normal but to shop around… Driving fuel efficiently by avoiding harsh accelerating and braking and ensuring tyres are inflated to the right pressures can help eke out every last mile and save money.”

Experts urge avoiding panic buying, recalling 2021 shortages.

Will Prices Reach 2022 Ukraine War Levels?

Optimism persists that peaks like £1.90 petrol/£2 diesel post-Ukraine invasion won’t recur soon. Yet, with oil at $120 and rising, RAC sees diesel hikes faster than Ukraine era. Treasury prolonged the 5p cut to August end to aid drivers.

The government balances relief with fiscal plans, as Reeves monitors amid calls for more. Drivers face bleak outlook unless tensions ease.