The RAC has warned that ‘dark clouds loom’ for fuel prices unless the chancellor keeps the 5p fuel duty cut in the upcoming Spring Budget.
These warnings come as the RAC has revealed that drivers of diesel vehicles are actually in a worse position than they were 12 months ago when the cut was introduced.
The price for diesel is 167.19p per litre now compared to 154.75p when the duty was cut, an increase of 12.44p.
Simon Williams, the fuel spokesperson for the RAC, said: “All eyes are now on what the chancellor decides to do with fuel duty at the Budget in just two weeks’ time.”
The RAC say they understand that the 5p cut cannot go on forever, but due to the pressures on household finances, they think that now is not the time to be removing the duty cut.
They add that consumers continue to be overcharged at the pumps with the users of the 12 million diesel UK cars coming off worse.
They added: “Despite there being just a 6p difference between the wholesale prices of both diesel and petrol throughout all of February, diesel pump prices are currently a colossal 20p more than petrol.”
The DUP MP Sammy Wilson, along with other MPs, highlighted in a letter to Jeremy Hunt, the Chancellor, that because of the 5p cut, “motorists have been saving money every time they fill up.”
The letter adds that the Office for Budget Responsibility in its 2022 report said the planned increase in fuel duty for March of this year would add 12p per litre.
The letter says and increase will hit drivers hard and will and have ‘adverse impacts on the wider economy.’
It says that the “average family car driver will have to fork out and extra £8 per fill up, white van men £20 and a medium sized truck £35 at the forecourt.”
In response a spokesperson for the Government said: “Global price rises are hitting pockets hard in the UK, which is why our plan to halve inflation this year will allow everyone’s income to go further.
“We are supporting millions of households with help worth £3,500 per household on average, on top of changes to National Insurance which will save £500 on average for around 30 million people this year.”
In addition they said the Government keeps all taxes under review and that no decisions have been made on fuel duty rates.
They added that fuel duty rates are a matter for the spring budget and the budget will align with the Office for Budget Responsibility’s Spring economic forecast.
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