Richard Walker, the government's cost of living champion and executive chair of the supermarket chain Iceland, has urged policymakers to extend a crucial fuel duty cut beyond its scheduled September expiry. Walker, a Labour peer, highlighted the significant rise in petrol prices, attributing it to ongoing geopolitical tensions in the Middle East.

Speaking on a radio programme on Thursday, Walker called for a re-evaluation of the 5p per litre fuel duty reduction, suggesting it be extended or even increased given current economic pressures. He cited Australia's recent 14p per litre cut to its fuel tax as an example of more substantial action taken elsewhere to shield motorists.

The current 5p per litre reduction in fuel duty was initially introduced by the previous Conservative government in March 2022. Chancellor Rachel Reeves confirmed its extension until August in her budget last November, with rates subsequently planned to increase gradually over five years. The Labour leader, Keir Starmer, has indicated that the planned September rise remains under review.

The plea for an extension comes amid a sharp increase in global oil prices, triggered by a blockade of the Strait of Hormuz. This vital maritime artery, situated between the Gulf and the Gulf of Oman, has been inaccessible since the United States and Israel initiated attacks on Iran in late February. Approximately one-fifth of the world's oil transits through the strait, and its closure has exerted considerable pressure on the global economy.

According to figures from the RAC, the average price of a litre of diesel at UK forecourts has climbed by 30% to 185.2p since the commencement of the conflict. Petrol prices have also seen a notable rise, increasing by 16% to an average of 154.5p per litre during the same period.

The cost of living crisis has prompted calls from various opposition parties for government intervention. The Conservatives have advocated for the removal of VAT on energy bills for several years, while the Liberal Democrats have proposed a 10p reduction in fuel duty.