Fuel duty freeze continues
The level of fuel duty is set to remain as it is for at least a year, the Chancellor has announced.
Delivering Budget 2024 Jeremy Hunt told MPs “the government is continuing to support motorists and industry by maintaining rates of fuel duty at the current levels for a further 12 months, through extending the temporary 5p fuel duty cut and cancelling the planned inflation-linked increase for 2024-25.
“This support is being maintained at a time where many other European countries have ended their fuel duty cuts: it represents around £13 billion of support over the three years from the cut being introduced, and is worth around £50 for the average car driver in 2024-25.”
Fuel duty was cut by 5p per litre in March 2022 as a response to the rise in oil prices following the Russian invasion of Ukraine and is currently levied at 52.95p for both petrol and diesel.
Prior to the cut it had been frozen at 57.95p per litre since March 2011.
Steve Gooding, director of the RAC Foundation, said:
“For all the focus on electric vehicles, 97% of cars on the UK’s roads run on petrol or diesel so the cost of filling up at the forecourt is a daily worry for tens of millions of people, not to mention businesses.
“This freeze is welcome but comes against a backdrop of oil prices, and hence pump prices, creeping back up over the past couple of months. Even as it stands the Chancellor is still getting more than 50% of what drivers spend on the garage forecourt in vehicle excise duty and VAT combined.”
ENDS
Contact:
Philip Gomm – Head of External Communications – RAC Foundation
[email protected] | 07711 776448
Notes to editors:
The RAC Foundation is a transport policy and research organisation which explores the economic, mobility, safety and environmental issues relating to roads and their users.
The Foundation publishes independent and authoritative research with which it promotes informed debate and advocates policy in the interest of the responsible motorist. For more information visit: https://www.racfoundation.org.