Fuel Duty, Pumpwatch & Zero-Emission HGVs: What Fleets Need to Know for 2026

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  • 2025 was a pivotal year for the UK’s transport and haulage sector. Costs remain under pressure, net-zero targets are looming larger, and new regulation is reshaping how fleets plan for the future.

    From fuel duty and HGV tax to Pumpwatch/Fuel Finder and zero-emission HGV infrastructure, the rules of the game for 2026 are now much clearer and more complex.

    Headline for 2026–27: Fuel duty frozen until March 2026, then 5p cut unwinds in stages from September 2026 to March 2027; RPI-linked rises from April 2027.

    1. The cost backdrop: Fuel, tax and duty in 2026

    Fuel duty: Frozen… then rising in stages

    The good news first: the government has continued the long-running freeze on fuel duty, extending the temporary 5p per litre cut that was first introduced in 2022. That cut now runs until 22nd March 2026, with duty rates held at current levels through 2025–26.

    In the Autumn Budget 2025, the Chancellor went further, confirming that duty will remain frozen until 1st September 2026 before the 5p cut is unwound in three steps - +1p per litre on 1st September 2026, +2p per litre on 1st December 2026 and +2p per litre on 1st March 2027 From April 2027, fuel duty will again rise annually in line with the Retail Price Index (RPI).

    For fleets, that means:

    • Short-term price stability through most of 2026.

    • A clearly signposted rise in diesel and petrol costs from late 2026 into early 2027.

    • A stronger financial case for tighter fuel management and exploring low-carbon alternatives where they stack up.

    HGV Vehicle Excise Duty and Levy: Back to inflation-linked increases

    After years of freezes, HGV Vehicle Excise Duty (VED) and the HGV Road User Levy are being uprated again in line with RPI. Measures announced at Autumn Budget 2024 brought inflation-linked increases into effect from April 2025, with further uplifts expected in 2026–27.

    While duty and levy make up a smaller share of total operating costs than fuel, they still nudge up the annual standing cost per truck, another reason operators are paying closer attention to whole-life cost and vehicle utilisation.

    2. New rules at the pump: Fuel Finder, Pumpwatch and price transparency

    Another major shift that will shape 2026 is fuel price transparency.

    Following recommendations from the Competition and Markets Authority (CMA), the government is implementing a statutory Fuel Finder scheme (often called ‘Pumpwatch’ in the media), designed to give drivers access to near real-time, station-by-station fuel prices.

    Key points for fleets:

    • Forecourts will be legally required to share live pump prices within around 30 minutes of any change.

    • The data will feed into apps, sat navs, online maps and price comparison tools, making local price differences far more visible.

    • The CMA will enforce compliance, with an initial “supportive” period in early 2026 before tougher enforcement kicks in from May 2026.

    For haulage businesses running large diesel fleets, this matters for two reasons:

    1. Sharper competition at the pump – making it easier to combine public price signals with your fuel card network, controls and reporting to minimise total cost and downtime.

    2. Higher expectations from customers – as price transparency improves, your clients will expect a clear story on how you manage fuel efficiently.

    It also reinforces the value of centralised fuel data: the more granular your transaction information, the easier it is to compare what you’re paying versus the wider market.

    3. Decarbonisation in practice: infrastructure and standards for zero-emission HGVs

    At the RHA Future Forum, the decarbonisation challenge was front and centre. A recent survey by the RHA revealed that 70% of HGV operators still did not have a formal decarbonisation plan, even though roughly half of attendees said they were already on the road to net zero, often starting with their fleets.

    The message from the panel was clear; battery electric vehicles are not the only answer for heavy-duty operations, focusing solely on tailpipe emissions can miss the bigger picture (including tyre and brake particulates and lifecycle CO₂), and biofuels and other low-carbon fuels still have an important role to play, especially for ICE vehicles.

    Since then, 2025 has brought concrete progress on infrastructure:

    • The government’s £200m Zero Emission HGV and Infrastructure Demonstrator (ZEHID) programme is exploring rolling out up to 370 zero-emission HGVs and around 50+ charging and hydrogen refuelling sites, with multiple fleets expected to be operating electric trucks at scale by early 2026.

    One high-profile HyHaul project aiming to create a hydrogen truck corridor along the M4 has been withdrawn after it couldn’t secure enough firm orders for fuel-cell HGVs in time. This is a reminder that hydrogen trucking is still at an early, commercially fragile stage compared with diesel and battery-electric.

    • New BSI standards published in May 2025 give practical guidance on designing HGV charging hubs, hydrogen refuelling sites and upskilling workshops to work safely with battery-electric and hydrogen trucks.

    • Private investment is flowing into multi-energy refuelling hubs that can offer electric charging, biofuels, hydrogen and biomethane in one place,with some of the first sites planned to be operational from 2026 onwards.

    Despite the progress made through 2025, the recent decision by Innovate UK and Department for Transport (DfT) to terminate funding for a flagship hydrogen truck corridor, after it failed to secure enough firm truck commitments, shows how fluid this landscape still is. Hydrogen is widely expected to have a role in decarbonising heavy transport but timelines, locations and business models are far from settled. For fleets, that’s a strong argument for keeping options open and investing in flexible infrastructure, contracts and payment systems that can adapt as the market evolves.

    4. Lessons from the RHA Future Forum that still matter

    The RHA Future Forum discussions remain highly relevant as we head into 2026.

    A technology-neutral mindset

    Speakers stressed that there is no single “silver bullet” technology. Policy and procurement decisions need to be technology-neutral, allowing operators to choose the right combination of fuels and vehicles for their duty cycles, routes and depots – rather than being pushed into one solution that may not be commercially viable. A technology-neutral approach means you can make decisions based on your duty cycles, routes and depot realities, not political soundbites.

    The cost–revenue tension

    Panellists highlighted the hard economics:

    • Electric trucks can reduce running costs in some use cases, but their upfront price and current range limitations mean diesel and biofuels will remain central for many fleets through the 2020s.

    • Range, cold-weather performance and charging times are still significant considerations for longer-haul work.

    That’s why many operators are prioritising depot-based charging and targeted routes for early zero-emission deployments, while exploring biofuels and efficiency gains across the rest of the fleet.

    Data, AI and payment technology as enablers Another strong theme was the role of data and digital tools:

    • Operators like Wincanton are using data and AI to optimise routes, reduce empty miles and increase vehicle fill rates, while also using predictive maintenance and automation to reduce admin tasks like invoicing.

    • Payment technology, particularly fuel cards, was highlighted as a key enabler, helping solve the “chicken and egg” problem of EV rollout by giving fleets a single way to pay for multiple fuel types and track usage in real time.

    • Panelists emphasised that data literacy is becoming essential: fleets need reliable, granular data to decide where to invest in new technology and how to prioritise decarbonisation efforts.

    In short, as regulations tighten and costs shift, the fleets that win will be those that can see clearly what’s happening in their operations and act on it quickly.

    5. What this means for your fleet in 2026

    Pulling all of this together, here are some practical priorities for the year ahead:

    1. Stress-test your fuel budget for late-2026 duty rises

    • Build the staged 5p duty reversal into your models and long-term contracts.

    • Consider how fuel surcharges, routing decisions and driver behaviour programmes can help offset the impact.

    2. Prepare to make the most of Fuel Finder and price transparency

    • Think about how you’ll use live price data via apps, telematics or routing tools to steer drivers towards lower-cost fuel.

    • Use your fuelcard data to benchmark the prices you’re actually paying against local averages.

    3. Map out your decarbonisation pathway, not just your net-zero headline

    • Identify which routes or depots could benefit first from emerging charging and hydrogen hubs.

    • Explore where biofuels or HVO might deliver lower emissions without major operational changes.

    4. Invest in data and digital tools, not just hardware

    • Make sure you have a single, reliable view of fuel spend across fuels, vehicles and locations.

    • Look for ways to automate admin, from invoice matching to compliance, so your people can focus on strategic decisions instead of paperwork.

    The common thread: Fleets that can see their fuel spend clearly across fuels, vehicles and locations will be better placed to make confident decisions.

    6. How The Fuelcard Company can help

    The Future Forum made one thing very clear: payment technology is no longer “nice to have” – it’s core infrastructure for modern fleets. Fuel cards from The Fuelcard Company are designed to help fleets:

    • Control costs – by consolidating fuel spend into one place, with detailed reporting for every transaction

    • Manage a blended fleet – supporting a range of fuel types so you can transition at your own pace

    • Free up time and reduce admin – by replacing paper receipts and manual reconciliations with streamlined digital processes

    • Support audits and compliance workflows – with the granular data you need for audits, ESG reporting and decarbonisation planning

    As 2026 approaches, the combination of rising duty, new transparency rules and rapid investment in zero-emission infrastructure can reward fleets that are data-driven, flexible and technology-enabled. If you’d like to explore how our payment solutions and fuel cards can support your plans for 2026, from cost control to multi-fuel management, book a short call with us.

    Information correct as at December 2025. This article is for general information only and does not constitute advice. You should consider your own circumstances and, where appropriate, take professional advice before acting on any of the information.