Autumn Statement – fuel duty comment05 Dec 2012

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)


141.07p (148.04p)






133.13p (142.17p)





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)