The AA has called for an extension of the fuel duty cut ahead of this year’s Budget announcement which has kept petrol and diesel prices affordable for drivers.
The association stated that the fuel duty freeze has helped many drivers with the costs of filling up while inflation continues to hit record heights.
The price of petrol has continued to increase across the UK with supermarkets and major retailers also raising costs. Drivers can find a staggering 14p difference between supermarkets’ cheapest and most expensive prices.
A petition has been handed to the Government from FairFuelUK, calling on the Government to maintain the five pence per litre cut or slash rates even further.
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Petrol and diesel prices are slowly starting to rise again
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With this year’s Spring Budget only a week away, the organisation demanded a reduction in VAT rates for on-street electric vehicle charging from 20 per cent to five per cent.
The AA also called for the reintroduction of incentives for drivers to help make the switch to an EV.
As for Vehicle Excise Duty, the AA said it hopes there won’t be an increase above inflation, whilst accepting the introduction of taxes for EVs after 2025 will continue to go ahead.
Jakob Pfaudler, CEO of the AA said: “The Chancellor has the chance to give confidence to drivers now, and for the future, in the final Budget before the general election.
“To help households tackle the cost-of-living crisis, maintaining the freeze in fuel duty and equalising VAT for on-street EV charging to match domestic energy rates would be a great first step.”
The AA is hoping to see a cut in Insurance Premium Tax (IPT) which would help reduce the cost of insurance for drivers.
The AA said a 25 per cent cut in IPT would be beneficial for all drivers, especially young motorists who face increasingly high motor insurance premiums.
Pfaudler added: “Future proofing the automotive workforce is needed too, and the creation of a new skills funding agency would help drivers in the years to come.
“Investing in school and college students in this exciting sector will help keep people on the road and instep with vehicle technology.”
Car insurance prices last year jumped by roughly 25 per cent with motorists in London being hit the hardest.
Mervyn Skeet, director of general insurance policy at the Association of British Insurers, said: “We’re acutely aware of the impact that rising motor insurance premiums continue to have on motorists.
“Rising repair costs and other factors outside of insurers’ control mean there is no single action that could bring down premiums.
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The rate of fuel duty was originally cut by five pence per litre in 2022
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“However, we are determined to do all we can to put the brake on. We are working with our members to understand what actions can be taken to help motorists manage costs.”