Fuel duty cut wiped out as diesel price hits new record high
Fuel duty cut wiped out as d...
Subscribe to Newsletter

Fuel duty cut wiped out as diesel price hits new record high

13 May 2022
2 min.
Fuel duty cut wiped out as diesel price hits new record high

Diesel prices have hit a new record high wiping out the chancellor's cut in fuel duty, latest figures show.

The average cost of a litre of the fuel at the pump reached 178.4p on Monday, according to government data.

The previous high of 177.5p was set two days before Rishi Sunak introduced a 5p per litre cut in fuel duty on 23 March.

It means that filling up a typical 55-litre family diesel car is around £26 more expensive than a year ago.

Petrol prices have also nearly returned to the level seen before the duty cut.

The average cost of the fuel was 163.7p per litre on Monday, compared with 165.4p on 21 March.

It comes amid growing pressure on the government to do more about the cost of living crisis.

Labour is calling for a windfall tax on the soaring profits of oil and gas giants as customers' bills rise - a move which has not been ruled out by Mr Sunak and Boris Johnson.

Steve Gooding, director of the RAC Foundation, said: "As we feared, it didn't take long for the 5p reprieve to be swallowed up by global events which are driving pump prices back towards record levels.

"The chancellor can't be blamed for the soaring cost of oil but he could and should go further in cutting the rate of duty.

"Whilst all the attention is on the price of a barrel of Brent crude, the chancellor continues to quietly take in taxation only just less than 50% of everything that drivers pay on the forecourt.

"There has been a lot of criticism of the windfall profits being made by companies like BP and Shell, but let's not forget that record oil prices are also bringing in extra for the Treasury in the form of VAT which is levied not just on the product price of petrol and diesel, but also the duty element."

Labour's shadow secretary of state for transport Louise Haigh said: "Working people are facing a cost of living crisis, and the Conservatives have literally nothing to offer.

"Labour's plan would help households through this crisis with up to £600 cut off energy bills, funded by one-off windfall tax on the oil and gas giants taking working people for a ride at the petrol pump.

"The Conservative government needs to set out an emergency budget to tackle its cost of living crisis - and support Labour's call to put money back in the pockets of working people."

Bernard Looney, chief executive of BP, has said his company's investment plans would not be affected by any windfall tax.

He told the company's AGM on Thursday: "Our £18bn plans are not somehow contingent on whether or not there is a windfall tax."

But he added: "By definition, windfall taxes are unpredictable - and so would challenge investment in home-grown energy... we would love to invest even more - and one of the key foundations of any such decisions will be a stable fiscal environment."

Source: https://news.sky.com/story/cost-of-living-fuel-duty-cut-wiped-out-at-diesel-price-hits-new-record-high-12611965

Persons2 and Companies1 in the news

Chancellor of the Exchequer
1 place
Prime Minister of United Kingdom
2 place
1 place
Rating companies
18 Mention
12 Mention
Daily Mail
9 Mention
Labour Party
6 Mention
X (Twitter)
6 Mention
Channel 4
6 Mention
The Sun
6 Mention


News GlobalEng.biz -this is the latest and most up-to-date information about the resonant events that have occurred in the region. The task of the resource's news feed is to convey to readers information about important events in business, politics, economics, healthcare, culture and other spheres of life in England with maximum accuracy and objectivity.
News GlobalEng.biz - this is coverage of the economic processes taking place in England, the latest news of public life, incidents and an overview of political events. English news is information about the activities of small and medium-sized businesses, the work of housing and communal services, the implementation of significant projects. The site's journalists describe not only the life of the region, but also talk about the current state of the English economy. Everything you need to know about innovations in the field of industry and agriculture, economy and government is collected in the "News" section on GlobalEng.biz.
News of England promptly informs the reader, shows the real picture and opens up topical topics. Communication with government structures and business gives us the opportunity to provide our readers with reliable, information-rich material.
The main page of the portal contains the key news of England!
Alena Potapova

Development Director
Died this year
Born this year