Drivers saved from £1 billion fuel duty payments
The Chancellor has announced that the 3p (+VAT) rise in fuel duty planned for January has been cancelled with the next scheduled rise now due in September 2013. In his Autumn Statement George Osborne said:
“The Government will provide further support to businesses and motorists by cancelling the 3.02 pence per litre fuel duty increase that was planned for 1 January 2013. The 2013-14 increase will be deferred to 1 September 2013. This will mean that fuel duty will have been frozen for nearly two and a half years. For the remainder of the Parliament, subsequent increases will take effect on 1 September each year, instead of 1 April.”
Commenting on the announcement, Professor Stephen Glaister, director of the RAC Foundation said:
“Yesterday an official report showed transport was the biggest area of household expenditure bar none, with fuel costs a big and rising part of that. Today it is a relief to see the Chancellor has read it and acted on it.
“Britain’s 35 million motorists each average about 7,000 miles a year. Cancelling this rise will save them a combined total of more than a £1 billion annually, money which they can use to ease their financial headaches and help support the economy through their own spending.
“It’s not as if drivers aren’t already paying a huge amount in tax. Even without an increase 60% of the pump price goes to the Exchequer.”
(Notes: the 7,000 miles per driver is derived from the latest annual car traffic figure of 244 billion miles)
Fuel facts:
|
|
Price per litre today
(Record price reached on 16th April 2012) |
Cost today of filling average car with 50 litre tank |
What a litre of fuel would have cost with 3p (+VAT) rise in fuel duty |
What cost of filling average car with 50 litre tank would have been if 3p (+VAT) added to fuel duty. |
Annual saving for driver doing average 7,000 miles per year (@40mpg) |
|
Diesel |
141.07p (148.04p) |
£70.53 |
144.67p |
£72.33 |
£29 |
|
Petrol |
133.13p (142.17p) |
£66.56 |
136.73p |
£68.36 |
£29 |
85% of adults in rural areas have a driving licence – compared to the GB average of 72%.
91% of rural households own a car – compared to the GB average of 75%.
Car use per person in rural areas is about 60% more than the GB average.
Changes in fuel duty over recent years:
December 2006 – 48.35ppl
October 2007 – 50.35ppl
December 2008 – 52.35ppl
April 2009 – 54.19ppl
September 2009 – 56.19ppl
April 2010 – 57.19ppl
October 2010 – 58.19ppl
January 2011 – 58.95ppl
March 2011 – 57.95ppl (current level)
For interviews or more information, please contact:
Philip Gomm – 020 7747 3486 | 07711 776448 | 020 7389 0601 (ISDN)