Motor factors hit with £8,000 fuel bill rise as IAAF urges Chancellor to scrap 2027 duty hike

The Independent Automotive Aftermarket Federation (IAAF) is calling on Chancellor John Healey to cancel the planned rise in fuel duty in the Autumn Budget on 28 October, warning that soaring diesel costs are putting unsustainable pressure on the motor factors who keep Britain’s independent garages supplied.

Average diesel prices have climbed from around 142p a litre in February to more than 195p today, close to the all-time record set in 2022. IAAF analysis shows that a typical motor factor running 10 delivery vans has spent around £8,000 more on fuel since February. At current prices, that is almost £1,800 a month in added cost.

Under current proposals, fuel duty will rise by 3p a litre on 1 January 2027 and by a further 2p in March, adding around £2,300 a year to the same 10-van fleet’s fuel bill.

The IAAF is urging the Government to:

• Postpone the scheduled fuel duty increases due in January and March 2027

• Introduce targeted relief for essential commercial fuel users, including parts distributors whose delivery fleets are central to their service

• Direct the Competition and Markets Authority (CMA) to take firmer action on retail diesel margins, which remain stubbornly high compared with petrol

Mark Field, chief executive of the IAAF, said: “Diesel has risen by more than 50p a litre since February, and a fuel duty increase in January would come at the worst possible moment.

“These costs don’t disappear. They end up in the price of parts and repairs, and ultimately in the bills paid by motorists. We’re asking the Chancellor to hold duty where it is and give essential business users the breathing space they need.”