Fuel duty freeze extended until the end of the year
BBC • • world
Key Points:
- The UK government will extend the 5p cut on fuel duty until the end of the year, rather than phasing it out in September as previously planned, to help mitigate rising fuel costs.
- The fuel duty reduction was initially introduced in March 2022 by the Conservative government in response to increased prices following Russia's invasion of Ukraine and has been repeatedly extended since then.
- The extension is expected to cost the government £455 million for the current tax year, with officials citing improved economic growth as a reason for maintaining the freeze.
- Average petrol prices recently hit a peak of 158.52p per litre amid global supply disruptions linked to the US-Israel conflict and tensions involving Iran.
- Additionally, plans include cutting the fuel duty on red diesel by over a third to support farmers and introducing a 12-month vehicle excise duty holiday for heavy goods vehicles to ease supply chain pressures.