- Keir Starmer told MPs in Parliament today that the 5p per litre fuel duty cut introduced in March 2022 will be extended to the end of the year (source: Chancellor protects drivers and businesses from rising fuel costs | GOV.UK)
- Previously it had been due to expire in September
- Today’s inflation figures showed petrol prices had risen 16.6% between March and April and diesel prices were up 34.1% in that time
Sarah Coles, head of personal finance at AJ Bell, comments:
“In his first appearance at PMQs since Labour’s humiliating local election results, Keir Starmer took the opportunity to announce an extension of the fuel duty freeze to the end of this year. He will no doubt hope this could offer a boost to his premiership after a challenging couple of weeks.
“The looming end to the fuel duty freeze in September would have loaded extra costs onto drivers at a time when they could ill-afford it. So keeping the freeze in place for the rest of year will avoid adding insult to injury for beleaguered drivers.
“Today’s inflation figures revealed just how much of a toll the war in Iran had taken at the pumps. The spike in the oil price pushed up the cost of a tank of petrol faster than any time since September 2022. The average petrol price was up 16.6% between March and April to 156.8p per litre, while the average diesel price was up 34.1% or 31.3p, to 190p per litre.
Other ways to cut your driving costs
“The duty freeze will help, but it’s not going to be enough if you’re already wrestling with higher prices. Fortunately, you can consider steps to cut your driving costs. One of the best ways to save on fuel is to think carefully about your driving habits, and whether there are alternative ways to travel. When you head out, you can also try to combine short trips into one, which is more fuel efficient than popping out every time you need something.
“You can improve fuel efficiency too, by doing things like making sure your tyre pressure is correct, driving more smoothly with less acceleration and braking, and not carrying any unnecessary loads in the car.
“It’s worth using a price comparison tool online. Don’t go out of your way for cheaper petrol, because you’ll soon burn through any savings, but you can try to fill up somewhere cheaper when you’re passing.”
