In the Spring Budget 2024, Jeremy Hunt announced a freeze on fuel duty for the next 12 months, delivering welcome news for drivers across the country. This decision comes as a relief for many, especially considering the challenging economic climate. The temporary 5p per litre cut, initially implemented in March 2022, will extend for another year, ensuring that fuel duty does not increase in line with inflation.
Mr. Hunt emphasised the importance of this freeze, stating, 'If I did nothing, fuel duty would increase by 13 percent this month.' This proactive measure aims to ease the financial burden on motorists while supporting economic recovery efforts.
Estimates suggest that this freeze will collectively save drivers approximately £5 billion annually. Despite this significant relief, it's worth noting that fuel duty still accounts for over half of what drivers pay at the pump.
On an individual level, the average car driver can expect to save around £50 next year due to the freeze on fuel duty. This means that fuel duty will remain fixed at 57.95p per litre, a rate unchanged since March 2011.
Against the backdrop of fluctuating fuel prices, government data reveals that the average cost of petrol and diesel at UK forecourts hovers around £1.45 and £1.55 per litre, respectively. These prices surged to record highs of £1.92 for petrol and £1.99 for diesel in July 2022, attributed largely to Russia's invasion of Ukraine and subsequent spikes in oil prices.
The freeze on fuel duty offers much-needed relief for drivers amidst ongoing economic uncertainties and volatile fuel prices, providing stability and financial respite for households across the nation.
