Conservative Party’s plans for fuel prices and road pricing

The Conservative Government aims to introduce a Backing Drivers Bill.

In terms of road pricing, the Backing Drivers Bill will not introduce pay per mile road pricing. The Bill will ban Mayors and local councils from introducing this.

The Conservative Government has suggested it has consistently been “on the side of drivers” since 2010. However, not all of its policies have been welcomed by the motor industry.

Simon Williams, RAC head of policy, said: “We were also surprised that pay-per-mile road pricing would be ruled out so definitively.

“With fuel duty revenue already declining and set to fall even further as more electric vehicles come on to the road, a replacement form of taxation will have to be introduced to avoid losing billions.

“Any further drop in tax revenue could ultimately result in our local roads crumbling into an even worse condition.”

In its manifesto, the Conservative Party pledges to deliver its Pumpwatch scheme to force petrol retailers to share live information on their prices which will help drivers pay fair prices.

Williams added: “It is, however, good news to see a pledge to get the Pumpwatch fuel price transparency scheme, which received Royal Assent shortly before the election was called, up and running.

“This, alongside an official price monitoring body, will hopefully give drivers fairer deals on the UK’s 8,300-plus forecourts.”

In March, the Spring Budget unveiled by Chancellor Jeremy Hunt MP extended the fuel duty freeze. The continued 5p per litre cut is expected to end on 22 March 2025.

As established in the Conservative Party’s manifesto, the Government stands by its decision to prioritise freezes in Fuel Duty.