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Wednesday, 18 March 2015

Five year fuel duty freeze continues

The Budget has confirmed help for motorists by cancelling Labour’s fuel duty increase for September. This means that fuel duty will have been frozen for 5 years - the longest freeze for more than 20 years. This builds on previous action to cut fuel duty by 1 pence per litre (ppl) in March 2011 and cancel all further increases during this Parliament. Fuel prices are currently 16 ppl lower than under the previous Labour government's fuel duty plans.

By the end of this financial year, prices at the pump will be 17 ppl lower saving the typical motorist £9 each time they fill their tank compared to the plans in place under the previous government. In total, by the end of this financial year a typical motorist will have saved £675 at the pump while a a small business with a van will have saved £1,400 and haulier £21,000, compared to the previous Labour government’s fuel duty plans.

By the end of 2015-16 the Coalition will have eased the burden on motorists by £22.4bn. Danny Alexander has made very clear that the government will watch the industry to ensure savings from the fall in oil prices are being passed through to consumers.