Overview

• Fuel Duty generated £24.6 billion in 2024, accounting for 60.9% of total energy tax revenue, but remains below the 2019 pre-pandemic peak of £27.8 billion.
• Local councils have increasingly implemented CO₂-based parking permits and workplace levies, described as 'stealth taxes' by critics.
• Experts warn these charges disproportionately impact low-income households with older petrol or diesel vehicles.
• The Parliamentary Transport Committee has called for environmental charges to be proportional, transparent, and clearly justified.
• The government plans to raise Fuel Duty further in March 2026 to incentivize the shift to electric vehicles and meet zero-emission targets.