Spring Budget 2022: Fuel tariff reduced by 5p per liter for one year

The Chancellor of the Exchequer has tackled rising fuel costs for motorists by reducing fuel tariffs by 5p per liter and government taxes by 53p per liter.

Sage Sunak claims that the measure represents the biggest cut in fuel tariffs and says the cuts will remain in effect until March 2023. The cost to the exchequer would be 5 billion, he said, which would be stored at the drivers ’pumps. .

AA is an organization that welcomes tariff reductions, but has expressed concern that the savings will not be passed on to drivers at the pumps. “Average pump prices hit a new record yesterday, despite falling wholesale costs”, noted AA spokesman Edmund King.

RAC says its calculation shows fuel tariffs are 5p lower – raising it from 57.95p to 52.95p per liter – a 55-liter family car will save about £ 3 from the cost of admission. Instead, it reduced the rate from the current 20 percent to 15 percent, which would have saved পারি 4 on the cost of filling a family car.

RAC Head of Policy Nicholas Lice called the 5p cut in tariffs “a drop in the ocean”, saying the measure would bring prices back to where they were only a week ago, and drivers would only notice a drop in prices after filling stations bought fuel. At a lower rate. Lice also raised concerns that retailers may choose to exploit certain tariff cuts and not pass them on to customers.

Labor’s shadow chancellor Rachel Reeves has condemned the government’s tax policy and criticized the failure to impose windfall taxes on oil and gas companies, calling on the party.

While cash-strapped drivers now pay £ 100 to fill a family car, there was intense pressure on Sage Sunak to throw up their financial lifeline. In the wake of Russia’s aggression in Ukraine, record fuel prices have come at a time when inflation is at its highest level in three decades and there is an impending rise in the national insurance plan.

While many are fighting for driving, others – such as district nurses who rely on their own vehicles for work – have to reduce the now-inadequate mileage rates offered by their employers.

Reduce the rate of VAT

An alternative to reducing the price of pumps is to reduce the rate of VAT. It is currently 20 per cent and payable on oil prices and fuel tariffs, hence a tax on a tax. Many across the country, including hard-hit holiers, are calling for an immediate five per cent reduction.

RAC says motorists are paying 7p more VAT on every liter of petrol purchased in 2019. In that pre-lockdown year, the average price of a liter was £ 1.25 for petrol and £ 1.31 for diesel, while in recent days it has reached unprecedented highs of £ 1.63 and £ 1.73.

See the latest UK petrol and diesel price information with our guide …

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