MILLIONS of drivers are set to save at the pump as the 5p fuel duty cut could be extended in Wednesday’s Budget.
The move would save motorists £3.30 at the pump over the next 12 months, according to the RAC.
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The Treasury has been under huge pressure in recent weeks to keep the popular 12-year fuel duty freeze as well as the 5p cut.
It remained undecided on both policies – and officials in Number 11 are said to be concerned by the £6bn per year price tag.
But The Times is reporting that Mr Hunt will indeed use his budget to freeze fuel duty and retail the 5p cut in petrol and diesel for another 12 months.
The move will cost the government an extra £6billion over the next year.
Fuel duty is a tax on fuel including petrol, diesel, biodiesel and bioethanol.
VAT (Value Added Tax) is also charged on most fuel.
The Sun’s Keep it Down campaign has forced ministers to freeze duties for 12 years in a row.
Since March 2011, the fuel duty tax has been frozen at 57.95p a litre.
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However, on March 23, 2022, Rishi Sunak announced that it would be cut by 5p per litre from 6pm that evening.
But the 12-month measure only lasts until the end of March.
Treasury sources say Jeremy Hunt is keen to extend the tax cut in his Spring Budget if public finances are in good shape.
No final decisions on taxes have been made yet, with Treasury officials keeping a close eye on inflation before solidifying Spring Budget policies.
How can I cut fuel costs?
There are ways to save an extra 5p per litre if you sign up for major supermarket loyalty schemes.
Esso has partnered with Nectar for its loyalty scheme and you can get 5p off a litre when you swap 300 Nectar points.
Drivers with a BPme rewards card will get one point for every £1 they spend in-store or on a litre of regular fuel at a BP garage.
Motorists will get £1 off their fuel or shopping for every 200 points.
Texaco, Shell, Sainsbury’s and Tesco loyalty card holders can also get money off their bills.
You can also cut fuel costs by driving more efficiently. This can be achieved by:
- Accelerating gradually without over-revving
- Always driving in the highest possible gear
- Allowing your car to slow down naturally as your brake
There are also sites you can use to help you find the cheapest petrol prices near you, like PetrolPrices.com and Confused.com.
These allow you to search the prices of UK petrol stations. All you need to do is enter your postcode and tell it how far you want to travel (up to 20 miles).
It’s also so easy to forget about the clutter building up in your car – whether it’s tools, kids’ toys or general rubbish. But it turns out additional storage space can increase fuel costs by a whopping 12%.
So, don’t forget to do a car clearout every now and then.
And, if you’re driving at a slower speed, think about taking the roof rack off and switching off air-con to save on running costs.
