Government support with fuel costs
Published: 22/05/26
Rising fuel costs continue to put significant pressure on businesses, with BCC research showing that even before the Iran conflict, 28% of firms were already under pressure to raise prices due to fuel costs, rising sharply to 61% for transport and logistics firms.
The government has responded by extending the 5p fuel duty cut for the rest of the year, alongside additional targeted support. This includes a 12-month road tax holiday for hauliers and a reduction of over a third in fuel duty for farmers, rail freight and other red diesel users. We have welcomed the government’s decision to extend the fuel duty cut.
For members, this support provides some short-term relief on operating costs, particularly for energy-intensive and transport-reliant sectors. However, the underlying issue of fuel volatility remains, meaning cost pressures and pricing decisions will continue to be a challenge
