Measure

Fuel duty

The measure

Fuel duty will be frozen for a ninth successive year. Following review, the government will maintain the difference between alternative and main road fuel duty rates until 2032 to support the de-carbonisation of the UK transport sector, subject to review in 2024.

 

Who will be affected?

Businesses producing and importing, and consumers of, hydrocarbon oils fuel products and alternative fuels.

 

When will the measure come into effect?

With immediate effect.

Our view

The continued freeze in fuel duty should bring estimated cumulative savings of c.£1,000 by April 2020 for car users compared to what they would have paid under the pre-2010 escalator. This will allow households and businesses to maintain vehicle running costs at lower levels.

Maintaining the difference between alternative and main road fuel duty rates should encourage the use of alternative fuels.