Lord Walker Urges Starmer to Extend Fuel Duty Cut Amid Oil Price Surge

Lord Walker urged the government to consider extending or enlarging the 5p fuel duty cut.

“- Published The prime minister's cost-of-living adviser has said the government should consider extending the fuel duty cut, after a rise in petrol prices caused by the US and Israel's war with Iran”

BBC

The cut is set to expire in September after being introduced in 2022.

BBC

Walker linked the need with the war-driven spike in oil prices after Iran blocked the Strait of Hormuz.

He noted Australia's 14p per litre cut compared to the UK's 5p.

Fuel prices surged following escalating tensions in the Middle East.

Average diesel prices rose 30% to 185.2p per litre.

Stoke-on-Trent Live

Petrol prices increased 16%.

The planned five-year phaseout could leave prices significantly higher.

Opposition parties pressed for swifter action.

“A cut to fuel duty should be extended to reflect the rise in petrol prices, the government’s cost of living champion has said”

The Guardian

Reeves extended the 5p cut until August 2026 with a gradual return over five years.

Lord Walker was asked about Tory peer Wolfson’s comment on Treasury profits.

The question of how to fund an extended cut remains unresolved.

The closure of the Strait of Hormuz triggered immediate economic shockwaves.

Ireland cut taxes, Australia halved fuel duty, Slovenia introduced fuel rationing.

The Independent

Sectors from manufacturing to transport faced rising operational costs.

Walker suggested bringing down the rate of fuel tax more broadly.