Measure
Fuel duty rates will continue to be frozen for 2024/25. The temporary 5p cut in fuel duty rates will be extended until March 2025, and the planned inflation increase for 2024/25 will not take place.
Any business either purchasing or importing fuel, as well as households consuming fuel.
The change will have operational effect from 23 March 2024. However, it results in no change to the current rate of fuel duty.
This measure will maintain the cut in the rates for heavy oil (diesel and kerosene), unleaded petrol, and light oil by 5p per litre, as introduced in the March 2022 Spring Statement, as well as a cancellation of the assumed inflation increase in fuel duty for 2024/25. This means that the fuel duty rate applied to standard petrol and diesel will remain at 52.95p per litre, where it has been frozen since 2011/12.
The government cite that this measure is aimed at maintaining the rates of fuel duty at the reduced levels set on 23 March 2022. The move is likely to be well received by businesses and households alike to minimise energy costs.
It is estimated that the measure is worth £3.1 billion over 2024/25 and will reduce CPI inflation by 0.2%.