Drivers would see annual bills rise by £100 if Chancellor allows 5p-a-litre fuel duty cut to expire

Drivers face an annual increase of £100 in their household bills if the government allows the current 5p-a-litre fuel duty cut to expire. This cut, initially a temporary measure introduced in March 2022 to combat high fuel prices following Russia's invasion of Ukraine, has remained in place despite its original 12-month plan. If the duty cut lapses, pump prices will rise, also increasing distribution costs for road freight operators, which the Road Haulage Association warns will lead to higher prices for food and energy. The Road Haulage Association estimates that letting the 5p-a-litre cut expire would result in a £7.3 billion increase in household living costs by 2029. For the average car-owning family, this means an extra £100 annually next year, potentially rising to £360 by 2029. Even families without cars would see an extra £255 per year in costs within four years due to increased prices of goods. The RHA urges the government to keep fuel duty frozen, highlighting that over half of every pound spent at the pump already goes to the government and that road freight companies are operating on tight margins. Chancellor Rachel Reeves previously extended the 5p-a-litre cut and froze fuel duty in last October's Autumn Budget, stating that increasing fuel duty would be the "wrong choice for working people" given the high cost of living and global uncertainty. However, the government is facing pressure to address a £51 billion fiscal black hole, and the decision on the fuel duty cut and freeze ... download the app to read more