PUMPED UP
Budget 2018 – Boost for motorists as Chancellor scraps 2p-a-litre fuel duty rise
FUEL duty is set to stay same for the ninth year in a row after Chancellor Philip Hammond ditched a planned 2p-a-litre rise in a bid to ease the burden on motorists.
The tax on fuel currently stands at 57.95p per litre of petrol, diesel, biodiesel and bioethanol.
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There is also a VAT – currently at 20 per cent – added to the price of fuel.
The freeze, which was announced in Philip Hammond's Budget today, is a huge victory for The Sun’s long-running Keep It Down campaign — and for our readers.
We have persuaded successive Chancellors to halt the annual tax raids on motorists, allowing them to keep almost £1,000 now in total since 2010.
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Mr Hammond previously admitted the policy saved drivers cash but warned it would cost the Treasury £38bn over the next three years.
But the Institute of Fiscal Studies said it brought the total amount of revenue “forgone” by the Treasury - and saved by motorists - to roughly £55 billion.
Motorist welcome government's fuel duty
VAN driver Paul O’Brien welcomes the fuel duty rise and extra cash for potholes.
Paul, a self-employed delivery driver in Hull with two large Luton vans said: “Fuel prices affect lots of different businesses, not just mine, but it’s always the smaller companies that suffer the most as we’re not always in the position to pass that cost onto our clients.
“I’m happy it’s been frozen again as it gives me a bit of peace of mind for my business,” he said.
“I do feel like there wasn’t much option on this one though - I think there would have been a big uproar if prices had continued to increase”
Unleaded prices have risen 1.8p from 129.5p/litre to 131.3p/litre while diesel prices have gone up by 2.1p from 132.3p/litre to 134.4p/litre. The price difference between diesel and unleaded has grown to 3.1p/litre.
But the 35-year-old added that the money for potholes won’t go very far.
“While this looks like a lot of money, it’s not nearly enough to properly repair the roads - all that seems to happen is temporary fixes to potholes that wash away as soon as the weather changes,” he said.
The freeze means that motorists will still be paying the same level tax on the fuel they buy.
Sadly, this doesn't mean they will continue paying the same price to fill up their car.
That's because the price of oil is likely to change and wholesale costs are usually absorbed by consumers.
Fuel prices have soared to their highest level since 2014, reaching an average of 131.58p for a litre of petrol this week
Diesel is even costlier at 136.66p a litre, which is the highest average since the middle of March 2014.
More about the Budget 2018
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In the end of last month, Asda, Morrisons and Sainsbury's cut petrol by up to 2p per litre sparking a fresh supermarket war.
Check out our top tips on how to drive down your fuel bill.
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