Fuels: Excise Duties
The question
To ask the Chancellor of the Exchequer, if her Department will make an assessment of the potential impact of (a) maintaining and (b) reducing levels of fuel duty on (i) households, (ii) small businesses and (iii) the haulage sector.
Answered by James Murray
At Autumn Budget 2024, the Government announced continued support for people and businesses by extending the temporary 5p fuel duty cut and cancelling the planned inflationary increase for 2025/26, meaning rates will remain frozen at the levels set in March 2022.
This support represents a total saving for drivers in 2025/26 of around £3 billion, or £59 for the average car driver. Vans will see an average saving of £126 and heavy goods vehicles will see an average saving of nearly £1,100. Those driving more than average, which includes drivers in rural communities, will generally experience larger savings.
The Rural Fuel Duty Relief Scheme provides a 5p reduction to motorists buying fuel in certain areas. The areas included in the scheme demonstrate certain characteristics such as: pump prices much higher than the UK average; remoteness leading to high fuel transport costs from refinery to filling station; and relatively low sales meaning that retailers cannot benefit from bulk discounts.
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