Skip advert
Advertisement

August fuel duty hike scrapped

The Government has delayed the planned three pence per litre fuel duty hike until January 2013

Petrol station

The Government has scrapped the three pence per litre (ppl) fuel duty hike that was scheduled for August. The remarkable u-turn follows months of pressure from campaign groups, motoring organisations and MPs, who argued that motorists could not afford such an increase.

Chancellor George Osborne said the move – which will cost the Treasury an estimated £500 million – would be paid for from savings generated from the Coalition Government’s previous spending cuts. 

Advertisement - Article continues below

He said: “We are on the side of working families and businesses and this will fuel our recovery at this very difficult economic time for the world.

“The one-off cost of this change will be fully paid for by the larger-than-forecast savings in departmental budgets.”

The move only offers a six-month respite for motorists, though, as Osborne said the 3ppl hike will go ahead in January 2013, instead.

RAC Foundation director Professor Stephen Glaister said: “This is good news for drivers and good news for the country. Given that tax makes up around 60% of the pump price, falls in the price of oil were only ever going to go so far in easing the financial burden on motorists.”

Skip advert
Advertisement
Skip advert
Advertisement

Most Popular

Car Deal of the Day: 717bhp BMW M5 Touring super-estate on a tasty lease deal
BMW M5 Touring - front action

Car Deal of the Day: 717bhp BMW M5 Touring super-estate on a tasty lease deal

The BMW M5 Touring is M car royalty, with a thoroughly impressive PHEV powertrain. It’s our Deal of the Day for 29 June
News
29 Jun 2025
Electric car appeal is at its lowest since 2019
Opinion - Kia EV9 GT

Electric car appeal is at its lowest since 2019

From poor electric car sales to crashes in F1, Mike Rutherford thinks its been a crazy few weeks in the automotive world
Opinion
29 Jun 2025
New Skoda Epiq vRS to headline brand’s hot-SUV onslaught
Skoda Epiq vRS exclusive image

New Skoda Epiq vRS to headline brand’s hot-SUV onslaught

Every future Skoda will get the go-faster treatment, with the brand also working on making cars sharper and more engaging
News
27 Jun 2025