Fuel tax cut ‘must be over 5p’ to reverse soaring costs Bedford News

According to the latest figures, the fuel tax cut of 5 pence per liter will not offset even half of this month’s fuel cost increases.

Latest figures from the Department for Business, Energy and Industrial Strategy (BEIS) show the average price of a liter of petrol has risen by 12.4p, from 153p on March 7 to a record 165 .4p on Monday, with diesel rising 18.9p to 177.5. p on Monday.

Rishi Sunak is expected to announce a reduction in fuel tax from its current 57.95p per liter to ease the pressure on drivers, but Steve Gooding of the RAC Foundation says a reduction of 5p doesn’t go far enough.

Referring to BEIS statistics, he commented: “These official figures show why a reduction in fuel duty is needed and why it should be higher than the 5p per liter that has been reported.

“The Chancellor will have benefited from a rise in VAT revenue given the increase in the price at the pump, so he could afford to give something back to road users.

“Nor should he be afraid that a temporary reduction in rights will lead to an increase in driving. With the current pressure on household budgets, there won’t be many people rushing to put in extra mileage, even if there is limited relief on the forecourts.

Fuel prices have skyrocketed since the Russian invasion of Ukraine and separate figures from RAC and data firm Experian Catalist, both of which use a different methodology, put the latest forecourt prices even higher than the government figures.

Experian Catalist pegged prices for Monday at 166.6p for petrol and 178.7p for diesel, while RAC’s Fuel Watch reported prices of 167p and 178.93p respectively.

Based on RAC figures, petrol is now 42p per liter more expensive than a year ago and diesel is 51p more.