#2026/555UK extends fuel duty freeze and adjusts red diesel rebate
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This order extends the temporary fuel duty freeze until 31 December 2026 and delays related rate changes until 1 January 2027. It applies to hydrocarbon oils and other liquid fuels charged under the UK fuel duty rules from 15 June 2026. Businesses that buy, sell, store, or account for fuel duty should update duty calculations and systems for the extended freeze period. The order also changes temporary percentage adjustments for certain red diesel rebate entries, increasing one adjustment from 2.05% to 9.96% and reducing another from 0.1018 to 0.0648.
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Key Changes
- Extends the temporary continuation of the 2022 fuel duty adjustment order to 31 December 2026
- Moves related future rate-change references from 1 December 2026 to 1 January 2027
- Changes specified red diesel rebate adjustment figures from 2.05 to 9.96 and from 0.1018 to 0.0648
Obligations
What this law requires
Apply the extended temporary fuel duty freeze to hydrocarbon oils and other liquid fuels charged with duty under the Hydrocarbon Oil Duties Act 1979 on or after 15 June 2026, with the freeze continuing until 31 December 2026.
Update fuel duty calculation systems and accounting processes to delay the related fuel duty rate changes from 1 December 2026 to 1 January 2027.
For the specified red diesel rebate entries in rows (b), (c), (f), and (g) of Table C in article 4 of the 2022 Order, apply the temporary percentage adjustment of 9.96 instead of 2.05 in column (C).
For the specified red diesel rebate entries in rows (b), (c), (f), and (g) of Table C in article 4 of the 2022 Order, apply the temporary percentage adjustment of 0.0648 instead of 0.1018 in column (D).