Why we are calling for an Essential User Rebate for HGV, coach and van operators

The Liberal Democrats this morning announced that they will be pushing in Parliament for a temporary 10p per litre fuel duty cut for three months - this will apply to all users of fuel .

While developments such as a ceasefire are welcomed and may stabilise markets, prices remain significantly higher and the pressure on operators continues.

The message we are still getting from operators is clear: the pressure is immediate.

Fuel costs have risen sharply, with many businesses reporting increases of over a third in a short space of time. This is unsustainable.

That’s why we are calling for an Essential User Rebate for HGV, coach and van operators.

These sectors are essential users of fuel. They keep supply chains moving, support communities and underpin the wider economy. Around 80% of goods are moved by road, and commercial vehicles contribute over a third of all fuel duty receipts — yet they are among the most exposed to rising fuel costs.

In simple terms, an Essential User Rebate would provide targeted support for the vehicles that keep the country moving — for example, allowing operators to reclaim part of the duty paid on fuel.

Other countries are already taking action. Across Europe, governments such as France, Spain and Italy allow commercial operators to reclaim part of their diesel duty, while others have introduced temporary fuel tax cuts or targeted support for transport operators during periods of high prices.

Our position is clear:
- an immediate Essential User Rebate
- no increase in fuel duty in September
- no link between fuel duty and inflation from April 2027
- fair payment terms to support cashflow across the sector

We have already set out this case to Government and will continue to press it over the upcoming days as this matter is urgent.