Fuel prices have hit record highs in the UK as Russia's invasion of Ukraine continues to affect global oil prices with the RAC stating the average price of petrol has jumped to £1.51.
Diesel drivers continue to be hit hard too with average costs climbing to a whopping £1.55.
With this in mind, Regit is now asking if Rishi Sunak should lower fuel duty, which in itself has been frozen for 12 years.
Fuel duty currently stands at 57.95p per litre and a VAT rate of 20% is then applied on top of the collective cost. All in all, this means for every litre (approx. £1.50) you spend at pumps this week, around 90p of that will be going into the government’s back pocket.
Now we’re not here to criticise the system or tax rates as such, we know what benefits taxation brings to our country and no doubt all of our readers will hold slightly different views on the subject.
We’re also well aware that Covid bit our collective pockets hard and asking central government to reduce taxes is, for many, an ‘easy answer’.
Our point is that two years ago when petrol was readily available for a £1 per litre, the government was making in the region of 78p per litre. So could they not either reduce VAT to a 10% rate to help us through this crisis or reduce fuel duty itself to 40/45p for a short period?
Takings from fuel would be pretty similar to what they were two years ago but even a 5-10% saving for us on fuel prices would go someway to help lessen the impact on families who are struggling up and down the country.
Let us know your thoughts in the comment box below.