‘No need to take action’ on fuel duty, says Labour minister

A Labour cabinet minister has pushed back against rallying calls for the government to hand petrol retailers some reprieve, stating there is “no need” to axe the planned hike in fuel duty.

Education secretary Bridget Bridget Phillipson said on Sunday the government would “take a view closer to the time” on whether to press ahead with the controversial increase.

The current main rate of fuel duty stands at 52.95p per litre, but includes a temporary 5p reduction introduced in 2022, which is scheduled to be reversed in stages starting in September 2026.

September’s increase will mark the first rise to fuel duty in 15 years, which has been frozen since 2011 – apart from a 5p cut in 2022.

“I’m not going to commit months ahead of time when there isn’t a need to act right now, because those protections remain in place,” Phillipson told Sky News.

It comes as the industry awaits a ‘targeted’ support plan from Rachel Reeves, to help the poorest households deal with the shock of surging energy prices following the outbreak of war in Iran.

Reeves has also pledged to crack down on “profiteering” among retailers amidst the energy crisis, but this has faced criticism from business leaders who have said the accusation lacks any foundation.

Asda boss Allan Lieghton said there was “zero credibility” in ministers’ profiteering claims against retailers and said the campaign was a “waste of time”. 

He added: “Thankfully we’ve all got better things to do than play that particular political shenanigan game.”

Badenoch calls for North Sea drilling

An increase to fuel duty has sparked backlash from opposite benches with the Conservatives, Reform UK and Liberal Democrats all calling for the government to reverse the decision.

Kemi Badenoch has doubles down on calls for the government to drill in the North Sea, instead of squeezing its fuel supply.

Badenoch told Sky News: “Rushing out to say the Government should be rationing fuel, that’s not the first thing I would be doing.

“The first thing they should do is start drilling our own oil and gas in the North Sea, it’s important for our energy security, our economic security, our national security – and they’re not doing that.”

Sir Keir Starmer said during Prime Minister’s Questions that he doesn’t hold the legal capacity to approve fresh exploration of North Sea oil and gas fields, with the decision falling in the hands of net zero secretary Ed Miliband.

“It’s absolutely clear that the quasi judicial [process] lies with secretary of state,” Starmer said. 

He added: “In the last four weeks, because we are on a fossil fuel rollercoaster, everyone is being held to ransom.