Theresa May confirms fuel duty freeze to remain

05 Octobre, 2018, 06:27 | Auteur: Auguste Feret
  • Theresa May confirms fuel duty freeze to remain

Fuel duty has not increased since January 2011, when it was increased from 58.19p per litre to 58.95p per litre.

In her keynote speech at the Conservative Party conference in Birmingham today, Mrs May revealed that Chancellor Philip Hammond won't include an increase to fuel duty (a tax on petrol and diesel that is charged in addition to VAT) in his Autumn Budget on October 29.

While the freeze is great news, the government has missed an opportunity to further boost economic activity by cutting cut fuel duty. Value-Added Tax of 20% is also charged on most fuels.

"Some have wondered if there would be a thaw in our fuel duty freeze this year".

Efficient logistics is vital to keep Britain trading, directly having an impact on more than seven million people employed in the making, selling and moving of goods.

Mr Hammond had previously said that continuing the fuel duty freeze would cost the Treasury £38 billion over the next three years.

RAC fuel spokesperson Simon Williams said: "Latest market indications are showing prices are beginning to go the wrong way, perhaps taking us closer to the record highs of April 2012".

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The move has, however, been criticised the Green Party.

Oil Marketing Companies have hiked prices of petrol by Rs 7.54 per litre in the national capital since 1 August while diesel prices have been hiked by Rs 7.43 per litre in the period. Roadside air pollution is causing up to 50,000 early deaths a year.

"The high pump prices are already forcing many families to cut back on journeys, household expenditure or both".

"We urgently need a shift away from vehicle use and towards more sustainable public transport, but this decision will do the opposite".

The move has prompted Greener Journeys to point to research carried out on its behalf which linked the freeze in fuel duty to increased congestion on United Kingdom roads, and harmful emissions of air pollution (see airqualitynews.com story). "We urge the Government to show leadership and make the right decision".

Traffic, the report claimed, was up four percent, producing an additional 4.5 million tonnes of carbon dioxide and 12,000 tonnes of nitrogen oxide emissions.

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