(qlmbusinessnews.com . Thu 12th Mar, 2026) London, UK —
Sir Keir Starmer Hints At Rethinking Fuel Tax Hike Due To Iran Conflict
Sir Keir Starmer, the Labour leader, has indicated that the proposed increase in fuel duty set for September could be reconsidered amidst ongoing conflicts in the Middle East.
The upcoming uplift is slated to nullify a 5p reduction implemented following the commencement of Russia's extensive military actions in Ukraine, which was intended to phase out gradually over six months.
Amidst a dialogue at Prime Minister's Questions, Kemi Badenoch, the leader of the Conservative Party, suggested Sir Keir may ultimately have to backtrack on the hike, urging him to cancel the planned increase outright.
In response to queries from MPs, Sir Keir clarified that the fuel duty would remain unchanged until September but acknowledged the situation would be re-evaluated concerning developments in Iran.
As energy prices soar, partly due to US and Israeli military operations in Iran, opposition factions have ramped up their calls to maintain the fuel duty reduction.
Chancellor Rachel Reeves addressed MPs, noting the unpredictable nature of oil prices and asserting the Government's commitment to monitoring these fluctuations.
During her testimony to the Treasury committee, Reeves was cautious about making predictions regarding fuel prices come September and expressed her reluctance to allocate government resources to manage what she views as market responsibilities.
In Parliament, Sir Keir defended his government's stance on this matter, emphasizing the importance of collaboration in efforts to stabilize the region.
Meanwhile, Badenoch critiqued Labour's stance on fuel duty, accusing the party of treating drivers as revenue sources and planning to impose the first fuel duty rise in 15 years. She challenged Sir Keir to abandon the increase and circumvent a predicted policy reversal.
Sir Keir, on his end, underscored his government's strategy regarding the ongoing conflict and critiqued Badenoch's fluctuating views on the UK's military engagement in Iran.
Conservative MP Graham Stuart echoed concerns about the impact of the fuel duty increase on his constituents, seeking a definitive answer from Sir Keir on the matter.
Sir Keir reiterated his stance, highlighting the decision to momentarily maintain fuel duty levels while keeping an eye on the situation in Iran.
Sir Ed Davey, the Liberal Democrat leader, sought reassurances that energy bills wouldn't see a substantial hike in July, to which Sir Keir mentioned ongoing efforts to cap energy prices and alleviate public concerns.
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