Fuel Duty Will Not Rise in 2017
Fuel duty is the tax you pay when you purchase fuel. It’s included in the price paid for diesel, petrol and other types of fuel used in vehicles and fleets. Naturally, a rise in fuel duty is a concern for businesses that depend on vehicles, both for the transportation of people and goods.
So, the fact that an increase in the tax has been cancelled by Chancellor Phillip Hammond for the sixth year in a row is great news for drivers and fleet managers.
The fuel duty was last raised in January 2011 from 58.19p to 58.95p a litre and then reduced by a penny two months later.
Chancellor Hammond said that “this will save the average car driver £130 a year and the average van driver £350 a year. It is a tax cut worth £850 million next year and means the current freeze is the longest for 40 years.”
While some people feel that fuel duty should remain frozen for more years to come, instead of just until 2018, the truth is that this measure will be able to save fleet managers and drivers a lot of money by the end of next year – and allow the transport industry to grow even more.
Currently, the average price of a litre of diesel or petrol is £1.03, although some sell it at a lower cost, so this freeze can also keep prices from skyrocketing at the pumps.