Business
Reeves Set to Scrap Autumn Budget Fuel Duty Hike After FairFuelUK Push
For the umpteenth time in 16 years of campaigning, the Westminster fuel-tax script appears to be writing itself again.
According to Treasury sources briefing the FairFuelUK campaign, Chancellor Rachel Reeves is preparing to drop the planned fuel duty rise from her Autumn Budget, though insiders caution that any reprieve is unlikely to survive beyond the March 2027 Financial Statement.
The retreat, if confirmed at the despatch box, will be the latest chapter in a saga that has become a fixture of every fiscal event since George Osborne first froze the duty in 2011. It will also be a notable, if temporary, win for Britain’s 5.5 million small businesses, many of whom now describe forecourt costs as the single biggest unhedgeable line in their operating budgets.
A £3bn pump tax raid since the Iran crisis began
Since hostilities flared in the Gulf, drivers have paid an estimated £3 billion more to fill up, while the Treasury has banked close to an additional £500 million in VAT receipts off the back of higher pump prices alone. Oil majors, predictably, have reported bumper margins. The motorist, equally predictably, has been left to foot the bill.
That contrast – soaring corporate profits set against a stagnating consumer economy – is what has put fuel duty firmly back on Reeves’s desk. As Business Matters reported last month, the Middle East flare-up has dragged headline inflation back to 3.3 per cent, hitting transport-heavy SMEs hardest of all.
71,000 emails, 148,000 signatures and counting
FairFuelUK says more than 71,000 of its supporters have now emailed their MPs urging the Chancellor to abandon the Budget hike. A separate petition, which has gathered more than 148,000 signatures, will be hand-delivered to the Treasury in the coming weeks. The campaign is calling not only for the freeze to be extended but for an immediate cut in fuel duty, in line with measures taken by more than 40 other countries.
The lobbying push echoes the cross-party effort earlier this year, when MPs delivered an earlier tranche of FairFuelUK signatures to Downing Street. That campaign cited Centre for Economics and Business Research analysis suggesting any short-term Treasury bounce from raising duty would be wiped out by a collapse of more than 60 per cent in fuel-tax income within five years as drivers cut mileage and shift to EVs.
“Cut all fuel taxes now,” says Cox
Howard Cox, founder of FairFuelUK, was characteristically blunt. “This clueless, bankrupting net-zero-driven Government remains stuck in a state of torpor, keeping the UK economy virtually stagnant,” he said. “Time and again, over 16 years of campaigning, we have shown that lower fill-up costs deliver more tax to the Treasury by boosting other revenue streams. The current cost of petrol, particularly diesel, is crippling motorists’ and small businesses’ ability to spend in the economy. When will these ignorant Treasury politicians understand that more money in people’s pockets drives growth? For goodness’ sake, cut all fuel taxes now.”
His frustration is shared in the haulage yards, trades vans and rural high-street economies that keep much of the SME sector ticking. Diesel, the lifeblood of British logistics, remains stubbornly above £1.55 a litre in many regions, and as Business Matters has previously documented, small employers lack both the financial resilience and the pricing power of their corporate counterparts to absorb or pass on the cost.
The international comparison: Britain stands almost alone
What is striking about Cox’s argument is not the rhetoric but the international evidence behind it. The International Energy Agency’s 2026 Energy Crisis Policy Response Tracker lists more than 40 countries that have actively cut, suspended or capped fuel taxes since the Iran conflict began. Britain is conspicuously not on the list.
Among the most striking moves logged by the IEA as of late April:
- Germany has cut petrol and diesel duty by roughly 14–17 euro cents a litre.
- Spain has slashed fuel VAT from 21 to 10 per cent and suspended its hydrocarbon excise duty.
- Poland has cut fuel VAT from 23 to 8 per cent and reduced excise duty to the EU minimum.
- Ireland has trimmed excise on petrol and diesel by €0.15–0.20 a litre, plus related levies.
- India has taken excise duties on petrol and diesel close to zero in some categories.
- Canada has suspended its federal fuel excise tax.
- Australia, Austria, Belgium, Croatia, Cyprus, Czechia, Hungary, Iceland, Italy, Korea, Latvia, Lithuania, the Netherlands, Norway, Portugal, Romania, Serbia, Slovenia, South Africa, Sweden and Türkiye have all implemented some form of fuel-tax or duty relief.
- Emerging markets including Argentina, Brazil, Cambodia, Ghana, Kenya, Lao PDR, Namibia, the Philippines, Saint Kitts and Nevis, Vietnam and Zambia have followed suit, often with measures targeted at hauliers and small operators.
By contrast, the UK has so far stuck rigidly to the 5p Spring 2022 cut and a series of frozen rates, an approach that according to Office for Budget Responsibility forecasts is already pencilled in to deliver a £2.2 billion uplift in fuel duty receipts in 2027–28 once the 5p cut is fully unwound and RPI indexation resumes.
What it means for SMEs
For business owners, the politics matter less than the planning. A scrapped Autumn hike will provide short-term breathing room for fleet operators, tradespeople and rural businesses heading into the winter, but the OBR’s own numbers make clear that the reckoning has merely been postponed. Any operator modelling 2027 cash flow would be wise to assume duty rates will rise sharply once the temporary cut expires and indexation kicks back in.
The deeper question for the SME community is whether the Chancellor is prepared to follow the IEA-tracked majority and use fuel taxation as an active lever to support growth, or whether she will continue to treat the duty as a guaranteed revenue stream to be quietly squeezed. On the evidence of 16 years of campaigning, FairFuelUK is bracing for the latter – even as it prepares to claim a tactical victory in the Autumn.
For now, Britain’s van drivers, hauliers and white-van entrepreneurs can breathe a cautious sigh of relief. The bigger fight, as ever, is in the spring.
Business
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Silver beats gold, stocks and bonds in 10-year returns. Here’s the data – Performance in long run
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Dividends and bonus issues: 31 stocks turning ex-record date this week. Do you own any?
Investors must hold shares of these companies in their demat accounts on the record date to be eligible for the respective corporate actions. The list remains tentative, as more companies may announce record dates for dividends, bonus issues and stock splits during the week.
Here is a day-wise list of corporate actions to watch out for this week:
June 15 (Monday)
SMC Global Securities has fixed June 15 as the record date for its final dividend of Rs 0.6 per share. The broking firm has a dividend yield of nearly 2%, according to data on Trendlyne.
June 16 (Tuesday)
Mini Diamonds (India) will turn ex-record date for a bonus issue of 1:1 on June 16. The company will issue one bonus share with a face value of Rs 2 each for every share held in the company as on the record date. The bonus shares are scheduled to be allotted by June 17.
RR Kabel has also fixed June 16 as the record date for its final dividend of Rs 5.5 per share.
June 17 (Wednesday)
Bengaluru-based real estate developer Brigade Enterprises has fixed June 17 (Wednesday) as the record date for its bonus issue in the ratio of 1:3. Earlier in May, Brigade Enterprises announced its first bonus issue in around seven years, coinciding with the release of its Q4 results. It had said that its board has approved the plan to issue one bonus share with a face value of Rs 10 each for every three shares held in the company as on the record date.
The company approved the plan to increase its share capital from Rs 250 crore, divided into 25 crore shares, to Rs 400 crore, divided into 40 crore shares.
Also read: Brigade Enterprises sets record date for 1:3 bonus share reward
Wednesday will also be the record date for dividend payments by Krishana Phoschem (Rs 0.5 per share), Madhya Bharat Agro Products (Rs 0.5 per share) and Steel City Securities (Rs 1 per share).
June 18 (Thursday)
The shares of Tata Technologies will turn ex-record date for a special dividend of Rs 3.35 per share and a final dividend of Rs 2 per share. HDB Financial Services has also fixed June 18 as the record date for a final dividend of Rs 2 per share.
Other stocks that have fixed Thursday as the record date for their respective dividends include Capital Small Finance Bank (Rs 5 per share), eMudhra (Rs 1.25 per share), GHCL (Rs 12 per share), Monika Alcobev (Rs 1 per share), Swastika Investmart (Rs 0.6 per share) and Vimta Labs (Rs 2 per share).
June 19 (Friday)
Friday will see some heavyweight companies turn ex-record date for their corporate actions. Private lender HDFC Bank has fixed June 19 as the record date for its final dividend of Rs 13 per share. Meanwhile, Tata Communications will see its shares trade ex-record date for a final dividend of Rs 17.50 per share.
Tata Motors Passenger Vehicles has also set June 19 as the record date for its Rs 3 per share final dividend, while HDFC Life Insurance Company will turn ex-record date for its dividend worth Rs 2.1 per share. Sanofi Consumer Healthcare India has fixed Friday as the record date for a final dividend of Rs 75 per share, while wires and cables manufacturer Polycab India will reward investors with a Rs 47 per share payout. IndiaMART InterMESH is setting a total dividend of Rs 60 per share, which includes a final dividend of Rs 30 and a special dividend of Rs 30.
In the power and automotive sectors, Torrent Power will pay its final dividend at Rs 5 per share. Additionally, healthcare firm Corona Remedies has earmarked a final dividend of Rs 10 per share. A host of other companies will also turn ex-record date for their respective dividends on June 19, including Solitaire Machine Tools (Rs 1.5 per share), AWL Agri Business (Rs 1 per share), Raghav Productivity Enhancers (Rs 1 per share), Amba Enterprises (Rs 0.75 per share), GHCL Textiles (Rs 0.6 per share) and Hindusthan Insulators & Industries (Rs 0.5 per share).
String Metaverse, meanwhile, will turn ex-record date for its 2:9 bonus issue on Friday.
Also read: Did City Union Bank shares really crash 23% in one day? Here’s how the bonus math works
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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Chubb Limited: The Stock's Consistent Compounding Makes It A Strategic Gem
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Nifty, Sensex to rally more on Monday? Iran peace deal among 5 factors to dictate Dalal Street this week
The rally added nearly Rs 10 lakh crore to the combined market capitalisation of BSE-listed companies, taking the total market value to around Rs 462 lakh crore. Here are 5 factors that will decide market mood.
Iran deal hopes
US President Donald Trump on Thursday said the United States and Iran could sign a peace deal as early as this weekend, a development that could reopen the Strait of Hormuz for shipping. Speaking to reporters at the White House, Trump said, “We just made a great settlement of the war with Iran.””The strait will officially open as soon as we sign, which could be soon, very soon, maybe over the weekend in Europe,” he added, noting that Vice President JD Vance could sign on behalf of the United States.
When asked whether Iran’s Supreme Leader Ayatollah Mojtaba Khamenei had approved the deal, Trump said, “I understand the answer is yes.”
Can oil prices extend slide
Oil prices fell to a three-month low on Friday after Iranian state media reported that a draft memorandum of understanding between Iran and the United States includes a commitment by Washington to ease oil sanctions and a pledge by Tehran to reopen the Strait of Hormuz within 30 days.According to Iran’s Mehr News Agency, the 14-point document states that final negotiations will begin only after half of Iran’s frozen assets are released, US oil sanctions are suspended and the naval blockade is lifted.
Will rupee strengthen more?
The Indian rupee strengthened by 60 paise to 95.25 against the US dollar in early trade. “Going ahead, crude oil movement will remain the key driver for the currency, along with capital flows and global risk sentiment.”
USD/INR witnessed a volatile week, trading within a broad Rs 94.90-Rs 95.75 range before settling near Rs 95.10. The pair closed near the lower end of its ascending trendline channel, indicating a modest strengthening of the rupee during the week. Immediate resistance stands at Rs 95.30-Rs 95.40. A sustained move above this level could ease near-term bearish pressure and push prices back towards Rs 95.60-Rs 95.80. On the downside, the previous reversal low near Rs 94.75-Rs 94.65 remains a key level to watch. A confirmed break below could drag the pair towards Rs 94.40, with a stronger base seen near Rs 94.20.
The near-term bias remains cautious, driven by a fragile geopolitical backdrop influencing dollar demand alongside the strength of domestic policy support.
Global support
US stocks advanced on Friday as SpaceX’s strong market debut lifted sentiment, while investors remained hopeful about a potential peace deal between the United States and Iran. The S&P 500 rose 0.5% to close at 7,431.46, while the Nasdaq Composite gained 0.31% to finish at 25,888.84. The Dow Jones Industrial Average climbed 353.51 points, or 0.7%, to settle at 51,202.26.
Elon Musk’s rocket maker debuted on the Nasdaq at $150 per share under the ticker SPCX, above its IPO price of $135. The stock surged more than 20% shortly after listing and ended the day up 19% at around $161.
Asian markets also joined the rally, led by a sharp rise in technology stocks. South Korea’s Kospi surged 5%, while Japan’s Nikkei 225 ended 3% higher. A continuation of the positive global momentum amid hopes of an Iran peace deal could help the Nifty and Sensex draw strength from favourable overseas cues.
Charts show promise
Sudeep Shah of SBI Securities said Friday’s rally carries added significance from a technical standpoint, as the Nifty closed above its 20-day EMA for the first time since May 2026, indicating an improvement in short-term momentum.
The daily RSI has rebounded sharply from lower levels and is now trading above the 50 mark while also moving above its 9-day average. Meanwhile, the Daily Stochastic has generated a bullish crossover, further reinforcing the positive undertone.
With multiple indicators turning favourable simultaneously, the obvious question is how much room the rally still has. According to Shah, the recent breakout above key short-term resistance levels, coupled with improving momentum indicators, suggests that the index could extend its upmove towards 23,800, followed by the psychological 24,000 mark.
On the downside, the 23,350-23,300 zone is expected to act as a crucial support area. As long as this support remains intact, the bulls appear to have regained control. The next few sessions, however, will determine whether the move is merely a rebound or the start of a stronger uptrend.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Business
FPI exodus continues, Rs 62,800 cr pulled out from equities in first fortnight of June
With the latest outflows, total withdrawals by Foreign Portfolio Investors (FPIs) from Indian equities have surged to Rs 2.87 lakh crore so far in 2026, surpassing the Rs 1.66 lakh crore pulled out during the entire calendar year 2025, according to data from the National Securities Depository Ltd (NSDL).
Pabitro Mukherjee, Deputy Vice President-Research at Bajaj Broking, said FPI flows in the coming week will depend on developments in the US-Iran peace talks, the US Federal Open Market Committee’s policy decision, the Bank of Japan’s rate decision and commentary from major central banks.
According to NSDL data, FPIs have remained net sellers in every month of 2026 except February. They withdrew Rs 35,962 crore in January before turning net buyers in February, investing Rs 22,615 crore, marking the highest monthly inflow in 17 months.
The trend, however, reversed sharply in March, when foreign investors pulled out a record Rs 1.17 lakh crore. The selling pressure continued in April with net outflows of Rs 60,847 crore and in May with withdrawals of Rs 32,963 crore. In June, FPIs have already withdrawn Rs 62,853 crore during the first two weeks of the month.
Himanshu Srivastava, Principal, Manager Research, Morningstar Investment Research India, said investors continue to navigate an environment marked by elevated uncertainty around the interest-rate trajectory of major central banks, geopolitical developments and concerns over global growth.
“In such phases, emerging markets often witness tactical de-risking as investors seek safety and rebalance portfolios towards developed markets and defensive assets,” he said.Srivastava added that India’s relatively rich valuations compared with several emerging-market peers may also have prompted foreign investors to adopt a more selective approach towards allocations.
Market participants said the persistent depreciation of the rupee has emerged as another key factor behind the sustained outflows.
The Indian currency has weakened nearly 6 per cent so far in 2026 and around 10 per cent over the past year, falling from the mid-80s level to about 95 against the US dollar despite efforts by the Reserve Bank of India (RBI) to stabilise the currency.
However, the pace of FPIs outflows moderated significantly in the latter half of last week, indicating that while risk aversion remained elevated, the intensity of foreign selling eased gradually.
On Friday, FPIs sold equities worth only Rs 1,082 crore in the cash market.
V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said recent geopolitical developments and expectations of a peace agreement between the US and Iran have resulted in a sharp correction in Brent crude prices to below USD 87 per barrel.
“For a large oil importer like India, this is a significant positive. India is facing a balance of payments deficit of about USD 60 billion in FY27,” he said.
Given the importance of foreign portfolio flows in financing the current account deficit and supporting the balance of payments, policymakers have announced a series of measures aimed at attracting overseas capital.
These include the RBI absorbing hedging costs on FCNR deposits mobilised by commercial banks, expanding the forex swap window, increasing access to government bonds through the Fully Accessible Route (FAR), and raising investment limits for non-resident Indians and overseas citizens of India in domestic equities.
In contrast to the equity outflows, FPIs invested more than Rs 13,200 crore in debt securities through the FAR route during the first fortnight of June, taking total investments through this channel to nearly Rs 28,000 crore so far this year.
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