Petrol and diesel drivers may face an increase in prices due to a potential new rule change proposed by the Labour Party government.
Chancellor Rachel Reeves is expected to announce fuel duty changes in the Budget on October 30.
Reports suggesting a possible 7p increase in fuel duty have been criticized by experts.
🚨SMF supports the idea of a fuel duty rise in #Budget2024
⛽️As highlighted, the government has missed out on £130bn so far, with projected losses reaching £200bn by 2028 – all while only saving the average household £13 a month on motoring expenses.
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— Social Market Foundation (@SMFthinktank) October 18, 2024
A Whitehall source has reportedly informed Chancellor Ms. Reeves that the time to make a decision on fuel duty is now, as mentioned in the Mail.
Other newspapers like The Daily Express and The Guardian have also covered the potential fuel duty increase.
The Chancellor has been cautioned that if she doesn’t take action to end the freeze now, it will be much more challenging to do so later in the parliament.
Paul Barker, editor of Auto Express, expressed concern that a rumored 7p rise in fuel duty would significantly impact drivers already struggling with the cost of living crisis.
Barker stated: “With the average car needing refueling every eight days, this increase would add nearly £4 to each fill-up – resulting in approximately £175 per year in additional fuel expenses. This would make it harder for drivers, especially those who rely on their cars for work or daily commuting, to manage their regular costs.”
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“What’s particularly frustrating is that this rise comes at a time when global fuel prices are starting to decrease, leading to suspicions that the Government is taking advantage of this brief period of lower costs to implement a substantial tax hike.
“Drivers who have already faced high fuel prices in recent years would be unjustly burdened at a time when household budgets are already stretched.”
A spokesperson from HM Treasury stated: “Following the spending review, the Chancellor has acknowledged that tough decisions need to be made regarding spending, welfare, and taxation in order to address the £22 billion deficit in public finances left by the previous Government.
“These decisions will be made comprehensively in the Budget.”