Fuel duty to increase for first time in 16 years
Fuel duty is to be increased for the first time in 16 years, according to the Office for Budget Responsibility (OBR).
An OBR document published ahead of Chancellor Rachel Reeves’s Budget said the 5p per litre cut in duty introduced by the Conservative government in March 2022 would only be extended until September 2026.
It would be “reversed through a staggered approach”, the OBR said.
From April 2027, the Government has stated that fuel duty rates will be increased annually by the RPI measure of inflation, the document said.
Fuel duty has not risen since April 2010.
Before the introduction of the 5p per litre cut, fuel duty had been frozen at 57.95p per litre since March 2011.
VAT is charged at 20% on top of the total price.
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The VAT is taxed on the tax as well as the product price. This demonstrates the sheer greed of the Treasury.
The overall trend for vehicle fuel is up. We have periods of stable prices, maybe a few pence fall but that is then overridden by rapid rises. In the last month alone the cost of fuel has risen by at least 5p. Raising duty too will be a double blow. Ultimately, it will raise the price of things like food and that’ll push up inflation. The rise in the cost of living never ends and generally falls squarely on the poorer elements of our society not the wealthy.