There will be a further extension of the 5p fuel duty cut until July 2027, the Chancellor John Healey has announced in the Autumn Budget.
The war in the Middle East has driven high fuel prices, with the average cost of a litre of diesel at UK filling stations exceeded £2 for the first time at the start of October.
RHA Managing Director, Richard Smith said: “The Chancellor’s decision to scrap the planned rises of 3p in January and 2p in March is the right call, and one we’ve pushed hard for with our ‘Back the Businesses that Keep Britain Moving’ campaign. We've been clear: a fuel duty hike is a food price hike, and with businesses and households struggling with additional fuel costs, this will offer some relief.
“Ministers should have gone further. Transport firms are still facing huge cashflow pressures, paying an extra £385 a week per vehicle on fuel, with 85% of businesses in our recent survey reporting reduced margins.
“The Government can still support our sector as critical national infrastructure. A 15p per litre fuel duty rebate for essential users, similar to schemes elsewhere, would provide cashflow support, keeping many more haulage, coach and van operators in business."
RAC senior policy officer Rod Dennis said: “While drivers may breathe a mild sigh of relief knowing that fuel duty isn’t about to suddenly go up, many are likely to be disappointed the Chancellor didn’t go further to support them – not least as the freeze is only in place until next summer. RAC research showed nearly two-in-three regular drivers wanted cuts to duty or VAT on fuel, with a similar proportion now cutting back on other spending because of the high cost of fuel.
“A freeze only avoids making an already difficult situation worse – it doesn’t make filling up any cheaper. And it’s worth remembering that pump prices still soared this summer, despite fuel duty being at this very same reduced rate.
“Drivers will now have to hope for an easing of the international conflicts that have pushed up oil prices and disrupted fuel supplies if pump prices are to come down in a meaningful way."
