What is fuel duty, what is the current rate and why has Theresa May announced a freeze?

During her conference speech in October, Mrs May announced her plans to freeze fuel duty. We explain all…

What is fuel duty?

Fuel duty is a tax on fuel and currently stands at 57.95p per litre of petrol, diesel, biodiesel and bioethanol.

VAT (Value Added Tax) is also charged on most fuel.

Fuel duty is expected to raise £28.2bn for the government in 2018-19.

In September, Chancellor Philip Hammond said the policy saved drivers cash but would cost the government £38bn if it carried on for another three years.


Why has Theresa May announced a freeze?

On October 3, Mrs May told the Conservative conference that she is rededicating herself to the "Just About Managings".

She said: "They are the people for whom this party must deliver."

She added that a car is a necessity "not a luxury" for millions of people.

The Prime Minister is hoping her speech will win over voters by declaring Britain's post-Brexit future is "full of promise".

She said: “I passionately believe that our best days lie ahead of us and that our future is full of promise."

In his Budget 2018 speech, Chancellor Philip Hammond ditched a planned 2p-a-litre rise in a bid to ease the burden on motorists as the fuel duty is set to stay the same for a ninth year in a row.

The freeze is a huge victory for The Sun’s long-running Keep It Down campaign — and for our readers.

We have persuaded successive Chancellors to halt the annual tax raids on motorists, allowing them to keep almost £1,000 now in total since 2010.

 

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