Dartmoor and Devon residents warned fuel duty rise could hit rural areas the hardest

Drivers, farmers and rural businesses across Dartmoor and Devon could feel the effects of planned fuel duty increases more strongly than people in towns and cities, a local fuel supplier has warned.

The temporary 5p fuel duty cut, introduced at the 2022 Spring Statement, is currently due to remain in place until the end of August 2026 before being phased out.

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According to the UK Government’s current plans, “Main fuel duty rates will be increased by 1p per litre on 1 September 2026, followed by a further 2p increase on 1 December 2026 and another 2p on 1 March 2027.”

Abby Turner, director of Okehampton-based fuel supplier Moorland Fuels, said small changes could have a noticeable impact in rural areas.

“Even modest increases in fuel duty will have a meaningful impact in rural areas like Dartmoor and across Devon. 

“The cost of fuel is an everyday reality for people here, it’s not a luxury, it’s essential.”

Ms Turner said the issue had come into sharper focus following recent world tensions in the Arab regions, which have pushed global oil prices higher.

“Recent events in the Gulf have brought this into sharper focus as oil prices have been driven higher,” she said.

“This has sparked warnings of further increases in fuel prices as global supply routes, such as through the Strait of Hormuz, come under stress.”

She added that reversing the duty cut at the same time could place additional pressure on rural households and businesses.

“When wholesale prices are being pushed up by factors largely outside the UK’s control, adding duty will come as an additional burden on rural households, farmers, tradespeople and businesses who already have very limited alternatives to road transport.”

Ms Turner said some groups in the fuel retail and haulage industries have called for the duty increases to be cancelled or delayed.

“Cancelling or postponing duty increases would help shield consumers and the wider economy from volatility linked to global events,” she said.

However, she added that businesses need clarity as soon as possible so they can plan ahead.

“A decision on this needs to be made sooner rather than later so that customers can plan ahead, building greater certainty and confidence in the economy.”

According to Moorland Fuels, agricultural contractors, farmers and rural delivery fleets are likely to feel the increases most acutely because they depend on vehicles and machinery every day.

“These customers depend on vehicles and machinery every day, and margins are often already tight due to wider cost pressures,” Ms Turner said.

“Any increase in duty, even in stages, represents an added operational cost that can’t easily be absorbed.”

She also said fuel customers have become more sensitive to price changes in recent years.

“There’s greater sensitivity to fluctuations, more forward planning where possible, and businesses in particular are keeping a close eye on fuel efficiency and route optimisation,” she said.

Ms Turner said rising fuel costs could ‘disproportionately affect’ rural communities where public transport options are limited.

“In areas like Dartmoor, private vehicles are not a luxury, they are a necessity,” she said.

“When fuel and wholesale energy costs rise, it has a ripple effect on household budgets and on the cost of running local businesses.”

The government first introduced the temporary fuel duty cut in spring 2022 in response to rising energy prices following Russia’s invasion of Ukraine. 

A planned phased increase from September would return duty rates closer to previous levels.