Fuel duty will not increase as prices at the pumps hit record high

Rishi Sunak confirmed the planned rise in fuel duty will be cancelled as he unveiled the Budget today.

His decision to keep it at 57.95p a litre for petrol and diesel, as it has been for the past 11 years, comes as prices continue to soar at the pumps.

Yesterday petrol hit a new record high of 143.48p per litre, with diesel at 146.89p – way above pre-Covid levels of 122p and 125p, respectively.

Despite holding back on plans to raise fuel duty by 2.84p – VAT is still up by 3.5p, meaning drivers will still have to pay more either way.

Speaking to the Commons this afternoon, Sunak told MPs: ‘With fuel prices at the highest level in eight years, I’m not prepared to add to the squeeze on families and small businesses.

‘So I can confirm today the planned rise in fuel duty will be cancelled. That’s a saving over the next five years of nearly £8billion.’

The move comes after a shortage of HGV drivers meant petrol stations across the country wouldn’t re-stock quickly enough, causing chaos on its forecourts.

Motorists were pictured queuing up for hours as panic buying begun, and some even came to blows as tensions hit boiling point.

Responding to the freeze, RAC fuel spokesman Simon Williams said: ‘We welcome the Chancellor’s confirmation that duty will continue to remain
frozen at 57.95p a litre until next year.

‘With pump prices at record highs, now would have been the worst possible time to change tack and hike up costs still further at the forecourt.’

FairFuelUK said it ‘unashamedly takes some of the campaign credit for the longest period of any UK excise levy being capped’.

The campaign group told Metro.co.uk: ‘This is great news and some relief for hard pressed drivers.

‘Congratulations Rishi, thanks for listening to Robert Halfon MP, Craig Mackinlay MP, our 1.7m supporters and the vast majority of the electorate.

‘But it was an opportunity missed too. With pump prices at their highest ever, meaning the Treasury is wallowing in a £1billion unexpected windfall, it was a time for the Government to have cut fuel duty significantly.

‘It was a time too, to incentivise drivers to move to cleaner fuels and put a moratorium on the unpopular 2030 ban on new diesel and petrol car sales, until more cleaner fuel technologies come forward.

‘For these reasons, it is imperative to take these points on board: UK drivers still remain one of world’s top three nations’ highest taxed motorists, face an uncontrolled pump pricing lottery, congestion, and clean air charges plus a perpetual demonisation for all the environmental ills of our planet.’

The Chancellor added public sector workers will also see ‘fair and affordable pay rises’ across the whole Spending Review period.

He also confirmed an increase in the minimum wage next year to £9.50 an hour. However inflation is expected to average 4% over the coming year, adding to everyone’s cost of living.

Get in touch with our news team by emailing us at webnews@metro.co.uk.

For more stories like this, check our news page.