Campaigners advocate for continued relief to motorists amid economic uncertainty

Chancellor Jeremy Hunt faces mounting pressure to extend the temporary 5p per litre cut to fuel duty, a measure set to expire at the end of March. Introduced in 2022 as a temporary relief, the cut has provided significant savings for drivers, but its future remains uncertain as the deadline approaches.

The current rate for fuel duty stands at 57.95p per litre, but the 5p reduction brings it down to 52.95p. While drivers have welcomed the relief, Whitehall insiders estimate the cost of maintaining the cut and freezing fuel duty for another year to be around £6 billion.

Campaigners, including FairFuelUK’s Howard Cox, argue that preserving the reduction is vital for economic growth. Lower fuel costs not only alleviate inflationary pressures but also stimulate consumer spending, foster business investment, and bolster the burgeoning white van economy.

Amidst calls for fiscal prudence, Tory MP Greg Smith emphasizes the importance of continuing the 5p cut at a minimum, advocating for a more pragmatic approach to fuel taxation that lessens the burden on motorists.

The Office for Budget Responsibility’s projections underscore the significance of fuel duty rates in government finances, with expectations of duty rates rising with inflation and the 5p cut potentially being reversed.

In addition to the fuel duty cut extension, campaigners are pressing for the swift implementation of the Pumpwatch system, which mandates fuel retailers to disclose prices transparently. This move aims to promote fair pricing practices and empower consumers to make informed choices at the pump.

While acknowledging the relief brought by the 5p cut over the past two years, a Government spokesperson remains cautious about the feasibility of further tax reductions in the upcoming Budget, citing ongoing economic uncertainties.

As the deadline for the fuel duty cut extension draws nearer, Chancellor Hunt faces a critical decision that will impact millions of motorists and shape the trajectory of economic recovery in the post-pandemic era.