Economy Minister Dr Caoimhe Archibald has written to the British Government calling for immediate cuts to fuel duty and VAT on road fuels, as petrol and diesel prices reach their highest levels since 2022. The move comes as new data shows diesel prices in some parts of Northern Ireland are approaching £2 per litre, with the average now standing at 190p per litre.
The Sinn Féin minister’s intervention adds to growing pressure on the Labour administration in Westminster to respond to the cost-of-living crisis affecting families and businesses across the region. As of 25 September 2026, the British Government had not publicly responded to her letter.
Fuel prices surge to four-year highs
According to the NI Consumer Council’s Fuel Price Checker, average petrol prices in Northern Ireland reached 166p per litre this week, up from 164.1p the previous week. Diesel has climbed to 189.9p per litre, rising from 185.6p.
The increases represent a dramatic surge since the start of the year. Consumer Council data shows petrol has risen by approximately 43p per litre since late February 2026, while diesel has jumped by 53p per litre. For a typical 40-litre fill-up, drivers are now paying roughly £16 more for petrol and £21 more for diesel compared to eight months ago.
Some forecourts are charging significantly more. In Armagh, diesel prices have reached 199.9p per litre—just 0.1p shy of £2. Stations in Newcastle, Omagh, Strabane and Banbridge are also reporting diesel prices above 192p per litre.
The price spike follows global oil market disruption caused by the ongoing conflict in the Middle East, which has kept crude oil prices consistently above $100 per barrel.
Minister’s call for urgent action
In her letter to Jonathan Reynolds, the British Secretary of State for Business and Trade, Minister Archibald warned that the economic pressure on Northern Ireland is becoming unsustainable.
“Families and businesses across the north continue to face sustained financial pressure; with prices at the fuel pumps rising, energy prices to heat homes and run businesses on a worrying upward trajectory, and no end in sight.”
— Dr Caoimhe Archibald, Economy Minister
“Hauliers, farmers and many other businesses, are reporting that higher transport costs are feeding directly into a challenging landscape, with the cost of doing business becoming increasingly unsustainable.”
— Dr Caoimhe Archibald, Economy Minister
“The British Government can and should be doing more to help local people, so I’ve written to Minister Reynolds today calling for an immediate cut to fuel duty and VAT on road fuels.”
— Dr Caoimhe Archibald, Economy Minister
Existing support schemes
The minister highlighted two support programmes already in place:
- Household Electricity Discount Scheme: 860,000 households will receive a £63 automatic payment from 6 October 2026, applied directly to electricity bills or through pre-pay meter top-ups
- £100 Home Heating Oil Support Scheme: Currently open for applications until 31 March 2027, available to approximately 340,000 eligible households
However, Archibald acknowledged these measures fall short of addressing the broader economic strain:
“While these measures provide some welcome support, it is clear that businesses and communities here need much more support; support that needs to come from the British Government and the fiscal levers it should pull immediately, to help people who are struggling now.”
— Dr Caoimhe Archibald, Economy Minister
What the British Government has already done
The UK Government has maintained a temporary 5p per litre cut to fuel duty since March 2022, which was scheduled to end in August 2026 but has been extended until 31 December 2026. From 1 September 2026, the cut began gradually reversing, with duty rising by 1p per litre. Further 2p increases are planned for December 2026 and March 2027.
The government also cancelled planned inflation-linked increases for 2026-27. According to HM Revenue & Customs, the average motorist will save over £120 per vehicle since Autumn 2024 as a result of these measures.
However, these UK-wide policies do not address VAT on fuel, which remains at 20%. A cut to VAT would require either UK-wide legislation or specific provisions for Northern Ireland that comply with post-Brexit trading arrangements. The Treasury has not indicated whether it will consider further cuts beyond those already announced.
Regional context and comparisons
Northern Ireland has historically had some of the lowest fuel prices in the UK due to tighter competition and links with the Republic of Ireland. However, analysis by The Guardian found that Northern Ireland has experienced the steepest fuel price rises in the UK since the Iran conflict began, with petrol up 19% and diesel up 35%.
Across the border, the Irish Government responded to similar pressure in April 2026 with a €505 million support package including a 10c per litre excise cut on petrol and diesel, direct payments to hauliers and farmers, and delayed carbon tax increases. The package followed widespread protests that blockaded motorways, ports and Ireland’s only oil refinery.
Questions remain unanswered
Several important questions emerge from the minister’s intervention:
- Has Minister Reynolds acknowledged or responded to the letter, and what is the British Government’s position on further fuel duty cuts?
- Would the UK Government consider a temporary VAT reduction on fuel, and what legal or procedural barriers might exist?
- How do current fuel prices compare to historical peaks, and what would constitute a sustainable price level for Northern Ireland’s rural economy?
- What assessment has been made of the economic impact on haulage, agriculture and other fuel-dependent sectors?
- Could further devolution of tax powers to Stormont provide longer-term solutions?
What happens next
The British Government is expected to set out its fiscal plans at the Budget later this year. Minister Archibald’s letter appears designed to influence those deliberations, though the Treasury has historically resisted calls for fuel duty cuts due to revenue implications.
For motorists, the Consumer Council continues to publish weekly price comparisons through its Fuel Price Checker, which shows variations of up to 20p per litre between forecourts in the same area. The UK Government’s Fuel Finder scheme, launched in February 2026, also requires stations to report price changes within 30 minutes.
Households struggling with energy costs can access information about available support through NI Direct or the NI Energy Advice Service on 0800 111 4455.