Spring Budget 2023: The government has frozen fuel duty for another 12 months, according to Chancellor of the Exchequer Jeremy Hunt’s speech to the House of Commons today (15 March 2023).
Hunt told the Commons that he would extend the 5p per litre cut in duty on petrol and diesel and freeze any further increases for the next year, to save the average driver £100 over the next year, and around £200 in total since the cut was introduced.
The cut, which was due to end next week, was introduced by then Chancellor Rishi Sunak in the Spring Budget last year to help reduce the impact of soaring fuel prices, and was then extended in the Autumn Budget.
An 11p increase in fuel duty in line with inflation had been planned for this year, but has been cancelled in order to help with volatile fuel prices that have been influenced by global circumstances, including the war in Ukraine and the cost-of-living crisis.
Hunt said: “Because inflation remains high, I have decided that now is not the right time to uprate fuel duty with inflation or increase the duty, so here is what I’m going to do. For a further 12 months I’m going to maintain the 5p cut and I’m going to freeze fuel duty too.”
Gary Smith, financial planning partner at Evelyn Partners, added: “Retaining the 5p fuel duty cut and maintaining the freeze look odds-on, not just because it would be politically damaging not to, but also because soaring transport costs could raise inflation and drag on a flagging economy.”