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UK Fuel Duty Hike Under Review Amid Middle East Crisis

Financial Times Companies •
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The UK government is reviewing plans to increase fuel duty as the Middle East crisis continues to impact global oil markets. Conservative Party leader Kemi Badenoch has criticized Prime Minister Rishi Sunak, suggesting he is heading toward 'another humiliating U-turn' on the proposed tax increase.

The fuel duty review comes amid growing pressure on households already struggling with high energy costs. The proposed increase was initially planned as part of the government's fiscal strategy to address budget deficits. However, the ongoing Middle East conflict has created market volatility, with oil prices fluctuating significantly.

Industry analysts warn that any fuel duty hike could further strain consumer spending and potentially slow economic recovery. The government faces a delicate balancing act between fiscal responsibility and economic stability. With energy prices already elevated due to geopolitical tensions, the timing of any tax increase remains politically sensitive. The review signals potential policy shifts as ministers weigh economic impacts against revenue needs.