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    Fuel duty frozen in Budget boost for petrol and diesel owners

    2 weeks ago

    Petrol and diesel owners will enjoy a fuel duty freeze for another 10 months. The decision, confirmed by Rachel Reeves in her Autumn Budget, will mean petrol and diesel duty rates remain at 52.95p per litre until September 2026, in a boost to road users. The Conservatives' 5p per litre fuel duty cut, introduced in March 2022 to help alleviate the cost of living crisis, was expected to be axed at the Budget. The policy was expected to end in Spring 2026, but Labour has extended the benefit in a boost to combustion owners across the UK. It means fuel duty rates have not increased for almost 15 years, with the last increase coming back in 2011. According to an Office for Budget Responsibility (OBR) report released ahead of the Budget, the move will cost £2.4billion next year and £0.9billion in the medium term. Speaking in the House of Commons, Ms Reeves said: "Under current plans the temporary 5p cut to fuel duty that was introduced during the pandemic will come to an end in April, and fuel duty will be uprated in line with inflation, but I know the cost of travelling to and from work is still too expensive, so I am extending the 5p cut to September 2026. "Because I know that changes in wholesale prices are not always passed on to motorists, I am bringing in new rules to mandate petrol forecourts to share real time price rises through a new fuel finder, empowering drivers to found the cheapest fuel, calling out rip-offs and strengthening the competiton, saving the average household £40 per year." Ahead of the Budget, there were rumours that the Conservatives 5p cut would be dropped in a bid to fill the Treasury’s black hole. Experts such as the Campaign for Better Transport had called on the Chancellor to end the temporary fuel duty cut. The group had suggested that the move could help the Treasury reclaim £4.2 billion a year in lost revenue. But, a petition from FairFuelUK received more than 152,000 signatures from British drivers demanding tax rates did not rise. They argued that reducing fuel duty would benefit businesses and consumers, with lower fuel costs likely to make the UK a more attractive destination. However, experts had warned the move could send petrol and diesel fees soaring to near record highs. Last week, the AA said removing the 5p reduction would see petrol hit 143.3p per litre, with diesel likely to go as high as 152.2p per litre.
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