Fleet & Fuel Roundup 21 November 2025

Your weekly insight into the developments shaping UK fuel prices, fleet costs, and transport policy.

Fuel Duty Cut Under Fire as Budget Nears

Logistics UK has warned that reversing the 5p per litre fuel duty cut would hit hauliers with an extra £480 million in annual costs. The group is urging the Chancellor to maintain the duty reduction in next week's Autumn Budget, highlighting the inflationary risk of higher distribution costs.

What this means for your fleet:

• Review fuel forecasts for Q1 2026 and beyond
• Consider buffer planning for potential duty increases
• Monitor Budget announcements closely on 26 November

Even small uplifts in duty can have a cascading effect on operating costs, especially for multi-vehicle diesel fleets. The Budget on 26 November will signal whether the Government prioritises cost stability or revenue generation.

Low-Carbon Fuels Take Centre Stage in Freight Strategy

In a major joint statement, industry leaders including Logistics UK called for Government backing of low-carbon fuels such as HVO, biodiesel and biomethane. The group argues these are essential for decarbonising HGV operations in the near term, with battery-electric options still facing high infrastructure and payload barriers.

Actions to consider:

• Evaluate HVO or biodiesel options for high-mileage routes
• Factor biofuel blends into 2026 procurement planning
• Watch for new incentives or funding rounds early next year

With policymakers leaning toward tech-neutral strategies, fleets running diesel may find it easier to blend lower-emission fuels without major vehicle upgrades. This is a practical pathway to decarbonisation that doesn't require wholesale fleet replacement.

DAF Pitches EV Truck TCO at Diesel Levels

DAF has launched a promotional programme for 100 XD Electric 350 FT tractors, claiming five-year total cost of ownership now matches diesel equivalents. Backed by current grants and fuel savings, the scheme marks a key milestone in EV truck viability.

Why this matters for fleets:

• EV cost parity is edging closer, at least in grant-backed contexts
• Opportunity to pilot an electric tractor without cost risk

While diesel remains dominant, selective EV trials may now be justifiable, especially for fleets with urban or short-haul operations. If the numbers stack up with grant support, this could be the moment to test electric HGVs in real-world conditions.

HGV Market Contracts Sharply as Pressure Mounts

UK HGV registrations dropped 14.5% in Q3, continuing a year-long slide. Rising costs, soft freight demand, and economic uncertainty are weighing heavily on replacement cycles. However, uptake of zero-emission HGVs surged to a record 2.4% market share, driven by early adopters and major logistics players.

For fleet managers:

• Delay non-critical replacement if depreciation risk is high
• Focus on efficiency gains from existing diesel assets
• Keep tabs on infrastructure rollout for EV HGVs in depots

Tight margins make 2026 planning more challenging. Careful cost modelling and maintenance scheduling will be essential to stretch the value from current assets while keeping an eye on when the market stabilises.

New UK to Morocco Freight Corridor Opens

Samskip has launched a weekly short-sea shipping route from Agadir and Casablanca to Tilbury and Rotterdam. Using climate-controlled containers, the route offers a greener alternative to full land transport, especially for perishables and industrial parts.

Implications for UK fleets:

• Reduced demand for long-haul North Africa to UK lorry trips
• Opportunity to integrate with last-mile delivery legs
• Fewer cross-Channel delays and border bottlenecks

While this benefits sea logistics, fleet operators involved in UK to EU or North Africa supply chains should adjust routing and contracts accordingly. The shift to short-sea could free up capacity on other lanes.