Fuel Duty Extension in the UK

The Spring Budget revealed that there will be a few major changes to the fuel duty levy. Chancellor Jeremy Hunt announced that the government would extend the 5p fuel duty cut for a further 12 months. This is to save motorists money, and help to keep the economy moving.

What is fuel duty?

Fuel duty is a tax charged on fuels used in road vehicles here in the UK. The tax is levied on each litre of fuel sold and is collected by the government from the suppliers of petroleum products. The revenue from fuel duty is used to fund public expenditures on transport infrastructure and other transport-related areas, such as environmental protection.

What changes will be made

The March Spring Statement revealed that the temporary reduction has been extended for a further 12 months. This means that fuel duty won't increase in 2023–2024 by the anticipated amount due to inflation. This measure will help keep fuel duty prices steady for an additional year and represent a decrease of about 12 pence per litre (ppl) for petrol and diesel rates compared to earlier plans.

This will maintain the 5ppl reduction in rates for heavy oil (diesel and kerosene), unleaded petrol, and light oil as well as the proportionate percentage reduction in rates for other fuels and rebated fuels, which is equivalent to a 5ppl reduction from the main fuel duty rate of 57.95ppl.

Save on average £100 per year

The government says that the extension of the fuel duty will save motorists £100 each year. With the current economic climate, it’s important for businesses to save the pennies where possible. And this is just one way to do so.

fuelGenie

Don’t forget that with your fuelGenie card, you can further your savings each time you fill up at Tesco, Morrisons and Sainsbury’s as well as most Shell stations with your fuelGenie+ card. On average, our fuelGenie customers saved 4ppl last week and 3ppl for the year to date. Not only this, but Morrisons has a limited-time offer where customers could save 5ppl when they spend £35 in-store or online.

So why not pop to your nearest fuel station to start saving? You can easily locate your closest fill-up point with our app or on our website.