Diesel has reached its highest price since records began, with an average litre standing at 199.18p, and the Chancellor of the Exchequer hinting that he may consider keeping the 5ppl fuel duty ‘discount’ in his October Budget.
John Healey told the Sunday Times that he would take soaring fuel prices “into account” as he puts the finishing touches to his Budget, which will be delivered on October 28.
The previous diesel price record, set in June 2022 at the height of the Ukrainian conflict, saw the fuel reach 199.09p. A litre of unleaded is currently retailing at an average of 174.13p according to the latest Fuel Finder dataset, some way off the 191.5p peak it reached in July 2022.
With prices volatile since the US/Iran conflict began in February, industry bodies have for some time been calling on the Treasury not to wind down the fuel duty discount, introduced in 2022. As things stand, a 3ppl increase will arrive in January followed by a tuppence rise in March.
The Federation of Small Businesses is the latest voice to call for a tax freeze, with the organisation’s Scotland director, Colin Borland, saying it is “vital that the UK government keeps a lid on fuel duty”, adding that diesel “is the fuel that pumps through the arteries of the entire economy.”
Earlier in the month the Petrol Retailers Association made a similar plea, while Liberal Democrat leader Ed Davey has urged ministers to cut fuel duty by 10p.
The RAC estimates the cost of filling a diesel car now stands at £110, some £31 up compared to the start of the conflct, with the breakdown firm saying prices have “entered new uncharted territory”.
