It has been confirmed that the temporary reduction in fuel duty will be extended providing continued support to motorists and businesses.
The reduction was first introduced in March 2022 and was initially intended to remain in place for a 12-month period. It has then been extended on several occasions.
Following the announcement by the UK Chancellor on 20 May 2026, it has now been confirmed that the reduced rate will remain in effect until 31 December 2026. The measure had been due to expire in September 2026 which would have resulted in an increase of 5 pence per litre in fuel duty.
The extension has been introduced in response to ongoing developments in the Middle East and the impact these events are having on global fuel markets.
In addition, the duty rate on red diesel used by farmers will be reduced by more than one third, decreasing from 10.18 pence per litre to 6.48 pence per litre. This change will come into effect on 15 June and remain in place until the end of the year. The measures are intended to help mitigate cost pressures and provide stability in global energy markets.
Under the Customs and Excise Agreement 1979, the Isle of Man is required to maintain its fuel duty rates in line with those of the United Kingdom.
Further information on fuel duty in the Isle of Man is available on our website.
Details of current fuel duty rates can be found on the UK Government website.
