Planned UK fuel duty rise axed, Prime Minister Keir Starmer says

(Alliance News) - An increase in fuel duty planned in the UK for September has been scrapped.

Prime Minister Keir Starmer told MPs the 5p per litre fuel duty cut introduced by the Conservative government in March 2022 would be extended for the rest of the year.

Rates were previously planned to increase from September, gradually returning to previous levels over the next five years.

Iran's restrictions on tankers passing through the Strait of Hormuz means the average price of a litre of petrol and diesel at UK forecourts is 26p and 44p respectively more expensive than before the conflict started on February 28.

Steve Gooding, director of motoring research charity the RAC Foundation, said: "Although today's news on fuel duty won't have the immediate effect of bringing forecourt prices down, at least it shows that ministers have registered the financial pain caused by rampant pump prices for individuals and for business.

"Since the start of the Iran conflict drivers have already paid a war premium of a staggering GBP3 billion in inflated fuel prices, half a billion of which has gone to the Exchequer in VAT receipts."

By Neil Lancefield and David Hughes, Press Association

Press Association: News

source: PA

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