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The fuel tax will be frozen for another 12 months, the prime minister announced in the spring budget.
Jeremy Hunt told Commons on Wednesday that he will extend tariff cuts of 5p a liter on petrol and diesel and freeze further price increases next year at a cost of £6bn.
He said this would save the average driver £100 next year, totaling around £200 since the 5p price cut was introduced.
A five-pence cut in fuel tax was introduced by Rishi Sunak in last March’s budget to mitigate the impact of rising fuel prices. The cut has been extended into the fall.
Mr Hunt said: In addition, for 12 months he will keep the five pence cut and freeze the fuel tax. “
Nicholas Lyes, RAC’s Director of Road Policy, said:
“The cuts have given drivers much-needed relief in what has been one of the most tumultuous years ever for pumps, breaking price records even after tariffs were cut. Given the importance of , tariffs should be kept low to combat inflation.”
Over the past 12 years, successive prime ministers have decided to keep the fuel tax freeze, reversing the official policy of increasing tax rates to match annual RPI inflation.
Last year, Rishi Snacks announced a temporary five pence per liter cut as the cost of living crisis began to worsen and global oil prices pushed up the cost of petrol and diesel in the UK.
Pump prices have since fallen, but remain higher than levels before inflation began to have a global impact.