Rishi Sunak cuts fuel tax by 5p per liter to embolden drivers after petrol price hikes

Car experts at the RAC suggest the 5p per liter fuel tax cut will save drivers of petrol and diesel cars around 6p. It comes as fuel prices continue to rise across the UK

Fuel tax will be reduced by 5p per litre
Fuel tax will be reduced by 5p per litre

Chancellor Rishi Sunak has confirmed a 5p cut fuel obligation as part of his spring declaration.

This move is a boost for drivers – but experts have called for more action from the Chancellor afterwards Gasoline prices reach record highs.

The fuel tax cut means the rate will be reduced to 52.92p for petrol and diesel from 6pm tonight until March next year. The current price is 57.95 pence per liter.

Fuel tax is included in the price drivers pay at the pumps, with VAT at 20% added to the total price.

Motoring experts from the RAC suggest the fuel tax cut will save drivers of petrol and diesel cars around 6p.

It currently costs £91.87 to fill a 55-litre tank if you’re filling up on petrol, or £98.43 for diesel.

Mr Sunak said in the House of Commons this afternoon that his announcement was the “biggest cut in fuel tax rates ever”.

The move to stabilize fuel prices comes as petrol and diesel eased slightly from record highs this week.

Average fuel prices slid on Monday, with petrol at nearly £1.67 a liter and diesel at £1.79.

Are today’s announcements enough to support families in need? Let us know: mirror.money.saving@mirror.co.uk

Price changes at the pump are linked to the price of crude oil and the dollar exchange rate.

Brent crude was down 0.42% on the day at $115.10 a barrel on the day – also up $15 a barrel on the week.

Fuel prices started to rise due to high global demand as the UK started to emerge from 2018 Coronavirus Crisis.

But the war inside Ukraine pushed prices even higher, largely due to sanctions on imports of oil from Russia,

Among other sanctions, Britain has pledged to end its reliance on Russian oil by the end of the year.

Sarah Coles, Senior Personal Finance Analyst at Hargreaves Lansdown, said: “The fuel tax cut is better than stabbing in the eye with a sharp stick, but it will hardly be life-changing for hard-pressed motorists.

“With the cost of unleaded petrol now averaging almost £1.67 a litre, it still means we have to make some terribly difficult decisions about how and where we travel going forward.

“It will also continue to drive up the cost of transporting items to stores, which will gradually be reflected in the price of everything on the shelves.”

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https://www.mirror.co.uk/money/breaking-rishi-sunak-cuts-fuel-26537036 Rishi Sunak cuts fuel tax by 5p per liter to embolden drivers after petrol price hikes

Fry Electronics Team

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