Fuels: Excise Duties
The question
To ask the Chancellor of the Exchequer, what the estimated cost of maintaining the freeze on fuel duty is in (a) 2024-2025 and (b) the five-year Parliamentary term.
Answered by Dan Tomlinson
At Autumn Budget 2024, fuel duty was frozen at the current rate of 52.95 pence per litre for 2025/26, at a projected cost of £3,015m in 2025/26. The OBR estimated in its March 2025 Economic and Fiscal Outlook that if the duty rate were to remain unchanged at its current level throughout the forecast period it would reduce receipts, on average, by £3.8 billion a year between 2026/27 and 2029/30.
Fuel duty was also frozen for 2024/25 by the previous government at Spring Budget 2024, at a projected cost of £3,090m in 2024/25.
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