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Sunak is finally set to cut fuel duty to ease motorists’ pain but is it enough?

By Tom Gibson | March 22, 2022


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Rumours are circulating that the Chancellor, Rishi Sunak, will cut fuel duty by a measly 5p per litre in his Spring Statement.

Regit has been calling for a cut in fuel duty  for some time and had hoped that VAT on fuel could be cut to 10% or even fuel duty in itself reduced to 40-45p per litre.

So, although hearing that Sunak is indeed expected to cut fuel duty, we’re left disappointed that the cut in itself is only a 5p per litre reduction to leave the charge at 52.95p per litre.

As a result of VAT, which is added after the fuel duty and the fuel charge itself, the Government is making significantly more from the sale of petrol and diesel than it was this time last year and it’s a safe bet to say that additional income is over the 5p per litre that is rumoured to being cut.

As we said in our previous article on the subject, we know money is tight and Covid-19 has only made finances worse, but the 5p cut is nothing less than a slap in the face given the wider situation.

Hinting at the move yesterday, the Chancellor said he was determined the cost of filling up a car should not become ‘prohibitively expensive’ and although senior Tories welcomed the prospect of help for motorists last night, many urged Mr Sunak to go much further to tackle what looks set to be the worst cost of living crisis in half a century.

Shadow chancellor Rachel Reeves said Labour would back a 5p cut in fuel duty but warned it would ‘only reduce filling up the car with petrol by £2’.  

Do you think 5p per litre is enough? Let us know in the comments below.

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