The government has temporarily cut petrol and diesel taxes to help Brits weather the cost of living crisis, but experts say motorists are not seeing the benefit at many petrol stations
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Petrol stations have passed on less than half of the Government’s announced 5p fuel tax cut.
The cut means drivers will pay 52.92p in tax on every liter of petrol and diesel from 6pm on March 23 until March next year.
But petrol prices have fallen by just 2.71 liters a year and diesel by 1.59p, the AA said Sky news .
The automobile organization said the average price for a liter of petrol is now 164.59 p.a. liter and 178.72 p.a. for diesel.
The 5p tax cut means a price reduction of 6p per liter when motorists fill up, as VAT is levied on top of fuel tax.
The AA fuel prices spokesman said: “The Chancellor went to the rescue of drivers on Wednesday and even before the start of the fuel tax cut at 6pm, drivers reported the price cut at some Asda petrol stations.
“However, on Thursday the average petrol price showed that less than half (2.71p) of the fuel tax cut had been passed on to drivers.”
Last week The Mirror reported that drivers would pay more fill up their cars despite the government’s fuel tax cut.
Gas stations in many areas changed the same way after the Chancellor’s tax cut went into effect – and some even asked for more.
Der Spiegel sent photographers to several gas stations before and after the Chancellor announced the tax cut to see how gas stations reacted.
An Esso petrol station in Brighton charged 166.9 liters pa for unleaded petrol last Thursday – as much as before the Chancellor’s announcement on Wednesday.
But a liter of diesel cost 184.9p at the same service station – up 5p in 24 hours.
But lots of gas stations have passed on the cuts .
with UK inflation rises to 6.2% – the fastest increase in 30 years – millions of households will worry about their own finances.
The 2022 cost-of-living crisis is impacting energy prices, fuel and food costs, with the government’s only solution so far being offered to all households a £200 loan to pay their energy bills – which ultimately have to be repaid.
Chancellor Rishi Sunak announced this in his spring declaration a cut in fuel taxesalthough this will cost the Treasury billions with no money returning to families’ pockets.
How will the spring statement affect you?
If you need help in the livelihood crisis, We have compiled a list of charities and programs offers advice and grants to keep you and your family warm and fed this year.
Asda, Sainsbury’s and BP have announced 6p per liter cuts while Morrisons said it would lower prices by 5p a liter.
The Treasury said the fuel tax cut would save motorists around £2.4 billion over the next 12 months.
However, the reduction in fuel tax is only a “drop in the ocean”, according to the automobile association RAC.
According to market researcher Appinio, most Brits (72%) are “very worried” about rising fuel prices.
The real income of a typical working-age household will fall by 4% over the next year – a loss of £1,100, the think tank Resolution Foundation has said.
Absolute poverty – rather than relative poverty – matters because it is the measure Boris Johnson chooses to use.
It comes after budget Watchdog said rising inflation – expected to rise 9% to a four-decade high – will cause the largest drop in disposable income since records began in the 1950s .
The foundation warned that poorer Brits will be hit harder as the Tory Chancellor refused to increase benefits – which will rise at less than half inflation.
https://www.mirror.co.uk/money/petrol-stations-pass-just-half-26577385 Petrol stations only pass on half of Rishi Sunak's 5p fuel stop as motorists briefly switch