British drivers are once again seeing petrol and diesel prices rise at the pumps, despite months of falling prices at the tail end of 2023. Something has to be done.
Rishi Sunak, who was Chancellor of the Exchequer in 2022, announced a reform of fuel duty in response to global tensions and the Russian invasion of Ukraine, which occurred the month prior to the March Budget.
When standing at the lectern in Parliament, Sunak announced that a “temporary 12-month cut” on fuel duty would be rolled out to “allow hard-working people to keep more of their earned income”.
The five-pence cut on the price of a litre of petrol and diesel was the first fuel duty cut in over a decade as the Conservatives looked to help drivers at the pump. It was welcomed but rarely seen at the pumps.
Drivers are hoping that fuel costs fall in the near future
PA
At the time of the Russian invasion, petrol drivers were paying £1.49 while diesel drivers were forking out £1.52 per litre.
In that time, motorists saw record-breaking prices for both petrol and diesel. Some greedy motorway service station owners were charging £2.50 for a litre of fuel.
As we enter the third year of the war in eastern Europe, Britons are paying £1.43 for petrol and £1.52 for diesel. So, what has the fuel duty cut actually done?
If the Government wants to keep people on their side, it needs to roll out urgent measures to slash the price of petrol and diesel. Drivers could be forced off the road with these expensive costs, especially during the cost of living crisis.
With an election coming within the next 11 months, all parties will be vying to attract support by offering a range of pledges to help motorists.
This could also include cuts to Vehicle Excise Duty tax, expensive car insurance rates and the VAT rate on public charging devices for electric cars.
Chancellor Jeremy Hunt will deliver the Government’s Spring Budget on March 6, with drivers waiting on bated breath to hear whether the fuel duty cut will be extended once again.
In recent years, petrol and diesel drivers have been impacted more by global issues like the war in Ukraine, instability in the Middle East and the Houthi rebel attacks on key shipping lanes.
RAC fuel spokesman Simon Williams said the current trajectory of fuel prices was “bad news for drivers” with higher costs likely to continue in the near future.
The onus is not just on the Government, however. The expert said that if a “new normal” at supermarkets could be maintained, drivers would get a fairer deal, saving around 7p per litre.
Retailers have taken advantage of drivers for too long and are still benefiting from a larger cut of profits than before the Russian invasion of Ukraine.
Drivers could be handed a major lifeline with stronger Government action on retailers and the cost of fuel duty. Prices could tumble but it remains to be seen whether there is enough appetite for such cuts.
LATEST DEVELOPMENTS:
Petrol and diesel prices are starting to rise again
PA
Retailers will always want to make the most profit. That’s how business works. But when will they become more competitive for the sake of Britain’s 40 million motorists and lower costs to sustainable rates? Hopefully it's soon.
