The Prime Minister stated on Wednesday that a scheduled increase in fuel duty, set to take effect from September, would be kept under review due to geopolitical considerations involving Iran.
The planned hike involves phasing out a 5-pence per litre cut on petrol and diesel that is currently in place. The reduction was initially implemented to mitigate the impact of rising energy costs on consumers.
The Prime Minister's comments underscore the government's sensitivity to global energy market dynamics. Geopolitical developments involving Iran frequently influence international oil prices and supply stability, which could exacerbate the impact of a domestic tax increase on consumers and businesses.
The 5p cut on fuel duty has been a temporary measure, and its scheduled removal would see the duty revert to its previous level. The decision to keep the plan under review suggests the government is monitoring the broader economic and geopolitical landscape before committing to the September increase.