Drivers urged to fill up at petrol stations by end of October ahead of £3bn warning

Motorists are being warned to brace themselves for a potential fuel duty hike that could prompt them to fill up their tanks before October 30, amidst fears of a £3 billion tax increase. Chancellor Rachel Reeves is believed to be considering raising the fuel levy in the upcoming autumn Budget, ending a decade-long freeze initiated in 2011.

The Labour MP is grappling with how to plug a gaping hole in the nation's finances and may see the fuel duty rise as a necessary step.

The critical announcement could be made as early as October 30, with the Budget set to be the sole fiscal event of the year, aiming to eliminate what Reeves has termed "surprise" tax and spending decisions, according to the Independent.

This means she will have to declare the fuel duty rates for 2025-26 at the Budget rather than waiting until spring. Undoing Rishi Sunak's 5p-per-litre reduction from 2022 could generate approximately £3bn, a figure that could climb if fuel duty resumes its inflation-linked ascent after a 13-year hiatus.

However, Jack Cousens from the AA has voiced strong opposition to such a move, as reported by i: "With household budgets under serious strain, the last thing they need is a rise in fuel duty.", reports the Mirror.

He added, "Unfortunately, the public are being hammered with perma-high pump prices that show little sign of budging."

Cousens also highlighted the broader impact of any increase: "Any increase would harm everyone as the vast majority of goods and services are distributed via petrol or diesel vehicles."

He concluded by warning of the knock-on effect on consumers: "Retailers will put the costs on to the consumer, creating more pressure on their wallets."

The Chancellor has previously stated that taxes are likely to be hiked following the state the Tories have left the public finances in. Ms Reeves also warned the public that "difficult decisions" will need to be made in the Budget on October 30.

Earlier this month, the Shadow Chancellor accused the Government of covering up a £22billion black hole in the public finances. Following this, some economists questioned whether her warnings were setting the scene for tax increases to come in the Autumn Statement.

In perhaps the clearest indication yet of her plans, Ms Reeves plainly stated: "I think that we will have to increase taxes in the Budget", when questioned about it during an appearance on the News Agents podcast. During the same appearance, she refused to answer questions on whether inheritance tax, pension reform and capital gains tax would be subject to increases.

A recent poll by BMG Research highlighted voters' disdain for such an increase. The poll revealed that only four per cent of those asked support the idea of a fuel duty increase; this is if tax rises are deemed necessary in order to repair the public finances.

One of the candidates vying for the Conservative leadership, Dame Priti Patel, said: "The prospect of a terrifying tax-grab on fuel duty looms large as we approach Labour's first Budget in the autumn."

She continued: "With the Government looking to tax motorists more and the Ulez tax punishing drivers in London, we need to keep on fighting for those who rely on their cars and get castiron guarantees from Labour that hard-working families won't be hit with a devastating fuel tax."

Campaigners are accusing petrol retailers of failing to pass on the duty cut to motorists, sparking concerns about potential price hikes if there's a rise. A Treasury spokesperson stated: "The Chancellor has been clear that difficult decisions lie ahead on spending, welfare and tax to fix the foundations of our economy and address the £22bn hole in the public finances left by the last government."

They added, "Decisions on how to do that will be taken at the Budget."