Fuel duty cut extended to July 2027 while 3p a mile EV charge stays on track for April 2028
By Eve
In the Autumn Budget, Chancellor John Healey extended the 5p fuel duty cut until July 2027, keeping duty at 52.95p a litre for petrol and diesel, while the 3p a mile tax on EVs remains scheduled for April 2028. Hippo Leasing says its average business EV lease covers 10,578 miles a year, so the charge would come to around £317 a year, or £26 a month on top of a typical £499 payment. Over the same distance a 45mpg petrol car pays around £566 in fuel duty before VAT, and Hippo reports October enquiries 7% up on last year and 13% up year to date, despite pre-budget surveys suggesting drivers were holding off.
Why it matters
The 2028 pay-per-mile start date gives CPOs and fleet buyers a fixed point to model EV running costs against, and the lease data suggests demand has not stalled. EV drivers would still pay a little over half the fuel duty of a comparable petrol driver, which supports the case for continued charging investment, though the added monthly cost may sharpen price sensitivity at the charger.
Source
- Original title
- “EV drivers face 2028 pay-per-mile countdown despite fuel duty freeze, say leasing specialists”
- Published
- 2 November 2026
In this story
- Topic
- Policy & Market
- Place
- United Kingdom
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