Forecourt operators face extra costs

BUDGET 2025: Petrol Retailers Association’s Gordon Balmer warns ending fuel duty freeze will place burden on families and businesses

Although the Petrol Retailers Association welcomes today's announcement by the chancellor that the 5p fuel duty cut will at least be extended until the end of August 2026, the failure to make the cut permanent and the announcement of its phasing out by March 2027 will significantly increase the financial burden on motorists with the expectation of steep rises in fuel cost in September 2026.

This increased burden on families, as well as hauliers and delivery firms, will push up the price of food, goods and services across the economy. 

Fuel Finder Scheme

The Treasury's statement that it expects the introduction of the Fuel Finder Scheme to create savings for motorists appears, at best, optimistic. Moreover, the PRA remains very concerned that the forthcoming introduction of the Fuel Finder Scheme will create new administrative burdens upon operators already facing a challenging cost environment.

Minimum Wage

The announced increases to the national minimum wage will also drive-up staffing costs, making it harder for PRA members to create and maintain jobs, as forecourt operators strive to maintain the viability of their businesses in an already challenging cost environment.

Business rates and EV charging

The PRA cautiously welcomes the introduction of measures such as 100% business rates relief for electric vehicle charging points for the next decade, but remains concerned that the overall high business rates coupled with inflationary pressures elsewhere will leave operators struggling to maintain profitability.

The PRA will continue to work closely with the government on the Fuel Finder Scheme and advocate for measures that support both consumers and businesses while maintaining stability in the fuel market.

Gordon Balmer is executive director of the Petrol Retailers Association (PRA)