Measure

Fuel duty rates 

The measure

The government is maintaining the rates of fuel duty at the current levels for an additional 12 months. 

 

Who will be affected?

Any business either purchasing or importing fuel, as well as households consuming fuel. 

 

When will the measure come into effect?

Immediately. Fuel duty will not rise in line with inflation as previously planned at the end of March.

Our view

This freeze includes an extension to the 5p per litre cut in rates applied to heavy oil, unleaded petrol and light oil announced in the March 2022 Spring Statement, as well as a cancellation of the planned increase of fuel duty in line with inflation in 2023/24.  

This measure will be well received by both businesses and households in an attempt to minimise energy costs in light of recent inflation and volatility in the market for fuel.  

It is estimated that the freeze will save the average driver £100 over the next 12 months.