It comes as Labor is calling for a windfall tax on oil and gas giants’ soaring profits as customer bills soar – a move not ruled out by Rishi Sunak and Boris Johnson
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The chancellor’s fuel tax cut has been canceled out by a new record high in diesel prices, the latest figures show.
The average cost of a liter of fuel at the pump reached 178.4p on Monday, according to government figures.
The previous peak of 177.5p was reached two days before Rishi Sunak introduced a 5p per liter fuel tax cut on March 23.
That means filling up a typical 55-litre family diesel car is around £26 more expensive than a year ago.
Gasoline prices have also almost returned to pre-tariff levels.
The average cost of fuel was 163.7p a liter on Monday, compared with 165.4p on March 21.
Households continue to grapple with a cost of living crisis, the Bank of England is warning that inflation could hit highs of 10% by Christmas and the UK could slip into recession.
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Labor is calling for a windfall tax on oil and gas giants’ soaring profits as customer bills soar – a move not ruled out by Mr Sunak and Boris Johnson.
Steve Gooding, Director of the RAC Foundation, said: “As we feared, it wasn’t long before the 5p reprieve was swallowed up by global events pushing pump prices back to record levels.
“The chancellor cannot be blamed for rising oil prices, but he could and should go further in cutting the tariff.
“While all attention is focused on the price of a barrel of Brent crude, the Chancellor continues to tacitly take just under 50% of everything drivers pay in the forecourt.
“There has been a lot of criticism of the windfall profits of companies like BP and Shell, but let’s not forget that record oil prices also bring additional revenue to the Treasury in the form of VAT, which is levied not only on the product price of petrol and diesel, but also the tax element.”
Louise Haigh, Labour’s Shadow Secretary of State for Transport, said: “Working people are facing a cost of living crisis and the Conservatives have literally nothing to offer.
“Labour’s plan would help households through this crisis with energy bills cut by up to £600, funded by a one-off windfall tax on the oil and gas giants, taking workers at the pump with them.
“The Conservative government must come up with an emergency budget to deal with its cost-of-living crisis – and support Labor’s call to put money into the pockets of working people.”
https://www.mirror.co.uk/money/fuel-duty-cut-wiped-out-26956711 Fuel tax cut will be completely wiped out as diesel price hits new record high