The planned 11p increase in fuel duty this year is being cancelled, it has been announced by Chancellor Jeremy Hunt. Fuel duty rates are set to stay at the current levels for the next 12 months in a bid to help motorists with "volatile" fuel prices.
The Chancellor confirmed in his Budget that the reduction introduced in March last year will be retained for another 12 months, and fuel duty will not increase in line with inflation. The Treasury said this freeze will help save drivers around £5 billion, and blamed the volatility of fuel prices on "circumstances globally", including "Putin's illegal invasion of Ukraine".
Speaking as part of today's Budget announcement in Parliament, Mr Hunt said: “Because inflation remains high, I have decided now is not the right time to uprate fuel duty with inflation or increase the duty. So here’s what I am going to do: for a further 12 months I’m going to maintain the 5p cut and I’m going to freeze fuel duty too. That saves the average driver £100 next year and around £200 since the 5p cut was introduced.”
