Measure
The government will cut the duty on petrol and diesel by 5p per litre for 12 months. A similar proportionate reduction will be made for other fuel categories, where practical.
This measure will affect anyone purchasing fuel at the pumps.
The cut applies from 6pm on 23 March 2022 across the UK. It will remain in place for a period of 12 months.
As widely anticipated, a reduction in fuel duty rates follows the previous freeze that has applied over the last eleven years.
As announced by the government, this is the largest ever cash-terms reduction in fuel duty rates, and it is only the second time in 20 years that the main rates of petrol and diesel have been reduced. The measure results in a reduction in the duty rate applied to unleaded petrol and diesel from 57.95p to 52.95p per litre, with an additional 1p VAT saving also accruing.
The measure will be welcomed by many businesses and households purchasing fuel, as it will partially mitigate the increasing fuel costs currently being experienced.