The 5p per litre fuel duty discount introduced in 2022 and due to end in September this year could be extended, Ed Miliband has hinted.
The energy secretary said that with no end in sight to the Iranian conflict, and the price of oil continuing to be as volatile as the products derived from it, the government will “see where we are” as September draws nearer.
At present the Treasury is paid 52.95 for every litre of fuel drawn in the UK, with this set to rise by 1p in September, 2p being added in December and a further tuppence rise set for March 2027.
Speaking to the BBC over the weekend, Miliband said: “We don’t know how long this conflict is going to go on and therefore, with five months to go until September, we will have to see where we are, obviously.”
Oil was trading at around $65 a barrel at the beginning of the year, but restrictions on both production and shipping mean a barrel of Brent Crude is currently trading at $104.5 a barrel, with West Texas Intermediate standing at $99 at time of writing, increases that are inevitably being passed on to consumers at the pumps, and will eventually trickle down to almost every sector of the economy due to increased haulage costs.
According to the RAC, the average cost of a litre of unleaded currently stands at 141.4p, with diesel 160.3p, up around 8p and 17p respectively compared to before the latest conflict began.
Miliband’s comments come after the Chancellor, Rachel Reeves, decided not to announce any changes to the proposed cessation of the 5ppl cut in her Spring Statement at the start of the month
