Rising fuel prices are adding pressure on households already struggling to cover basic costs of energy, housing and food. In the face of this there are calls to (further) cut fuel duty, the tax on each litre of diesel and petrol bought in the UK. Current rates are just under £0.53 per litre, or between one third and one quarter of the pump price. Last year this raised the government nearly £26 billion.
With fuel poverty rising, few would argue that the current position should be left as it is, but we do not think cutting fuel duty is the answer.
