The Petrol Retailers Association has called on the Chancellor of the Exchequer to make the 5p per litre fuel duty ‘discount’ a permanent fixture.
The discount, introduced in 2022 to offset rising fuel costs brought about by the Ukrainian war, has been extended several times since its implementation, most recently last week, with the Prime Minister announced it would remain in place for the rest of the year rather than begin to be wound down from September, as was previously planned.
Documents subsequently released by HMRC have revealed, however, that the delay only comprises a three-month reprieve that will ultimately increase the rate at which the discount will be removed. Rather than there being a 1ppl rise in September, followed by a pair of 2ppl hikes in December, and March 2027, there will now be a 3ppl rise in January, then a 2ppl increase in March.
The PRA says the government should change course, though, fixing the 5ppl cut in place for the remainder of this government to reflect that homes and businesses are “struggling due to pump-price increases and inflation following the war in Iran”.
The industry body’s boss, Gordon Balmer, commented: “Fuel duty increases, at a time of inflation and elevated pump prices, are terrible for households and businesses which are already wrestling with high energy costs.”
He added: “The PRA calls on the Chancellor to rethink her plan to revive her draconian fuel duty hikes in the new year.”
