Prime Minister Rishi Sunak answers questions of the Liasion Committee
(Picture: PRU/AFP via Getty Images)Prime MinisterRishi Sunak has refused to rule out the prospect of drivers facing a 12p-a-litre hike in fuel duty in March.
A 23 per cent increase in the duty is pencilled in for March 2023 under Treasury planning, but chancellors have repeatedly frozen the levy.
Asked by MP Harriett Baldwin, chairwoman of the Treasury Select Committee, to confirm that the rise would not go ahead, the Prime Minister told MPs on Tuesday that he would not comment on matters which were the responsibility of Chancellor Jeremy Hunt.
“Having previously had his job, I always preferred it when the Prime Minister made absolutely no comments about future tax policy, so I will absolutely adhere to that,” he told the Liaison Committee.
“Tax decisions are those that are made by the Chancellor in fiscal statements and that’s the way it should be.”
Mr Hunt will deliver a Budget on March 15.
Pressed by Ms Baldwin whether he was “going to let the Chancellor get away with that”, Mr Sunak again refused to rule out an increase.
“I am going to let the Chancellor make his policy on fiscal decisions and announce them in the normal way,” he said.
“Tax decisions are those that are made by the Chancellor in fiscal statements and that’s how it should be.”
Fuel duty is the highest levy placed on diesel and petrol, at 52.95p per litre, followed by VAT at 20 per cent. The headline rate on standard petrol and diesel has been frozen since 2011.
The Government makes £26.2bn from the tax - which is equivalent to around £930 per household and 1.0 per cent of national income.
Fuel duty is included in the price drivers pay for petrol, diesel and other fuels used in vehicles for heating.
Petrol is the cheapest it’s been since March, but is still costing 10p per litre more than this time last year, latest data from Petrol Prices reveals.
The average price for unleaded across the UK was 155.4p per litre on December 13.
Diesel is the cheapest it’s been since May 2022, but still 30p per litre more than this time last year. The average diesel price was 179.3 on December 13.
In London the average price for unleaded was recorded as 157.8p per litre between December 1 and 13, up from 146.6p the same time last year - a difference of 11.2p.
