John Healey has frozen fuel duty for a 15th consecutive year and extended the Ukraine war 5p cut, as part of a raft of small measures aimed to shield households from the Middle East conflict.

The Chancellor confirmed the levy on petrol and diesel would remain frozen at 53p a litre until July, saying: “For millions of people, the cost of living and the cost of doing business are the same. The home is the office. The van is the family car.

“Earlier this year, the government extended the 5p cut to fuel duty and slashed red diesel to its lowest rate in over 20 years, With the war in the Middle East still driving high fuel prices, I am extending these tax cuts for motorists through the winter and spring to July.”

The protracted conflict in the Middle East has carried prices at the pump to levels not seen since the height of Putin’s offensive on Ukraine. Diesel has risen especially sharply after refineries across the world became targets in both Iranian and Ukrainian strikes.

The refined fuel has remained close to the record high of 200p a litre struck last month, despite a concerted effort from policymakers to release emergency supplies onto the international market.

Unleaded petrol prices are also at highs not seen since early 2002, when the UK was rocked by fuel shortage fears. Motorists are currently paying an average of 173.5p per litre for petrol, though the RAC estimates those prices are due to fall in the near future.

Speaking at the dispatch box, Healey said the move would support “households, hauliers and farmers”.

Fuel duty now frozen since 2011

The extension is one of several minor measures announced by the Chancellor to protect households from the ongoing war in the Middle East. Earlier on Wednesday, he unveiled plans to scrap the standing charges placed on energy bills for 23m homes, which he branded “unfair and outdated“. The fee is added to the top of a household gas bill irrespective of how much energy a home consumes, meaning it tends disproportionately to impact poorer households.

Healey’s move to cap fuel taxes marks the 15th consecutive year in which the government has chosen either to freeze or cut fuel duty. The levy was last hiked as part of austerity measures introduced by Alistair Darling in 2010. But the hike to 59p per litre was short-lived, with his Tory successor George Osborne opting to reduce it back to 57.95p a litre just three months after the hike took effect.

In 2022, Rishi Sunak announced a temporary 5p discount on the tax to help households manage the Ukraine war’s impact on fuel prices. The discount has remained in place since, despite it being due to expire at every Autumn Budget since Sunak’s initial announcement.

RAC senior policy officer Rod Dennis said: “While drivers may breathe a mild sigh of relief knowing that fuel duty isn’t about to suddenly go up, many are likely to be disappointed the Chancellor didn’t go further to support them – not least as the freeze is only in place until next summer. RAC research published yesterday showed nearly two-in-three regular drivers wanted cuts to duty or VAT on fuel, with a similar proportion now cutting back on other spending because of the high cost of fuel.”