RAC wants cuts in fuel duty in Europe

Fuel prices have gone up because of the price for crude oil, which is used to make petrol and diesel. After Russia invaded Ukraine in February, oil prices went up as demand increased after the lifting of Covid restrictions.

In the Spring Statement in March, the government announced a 5 p-a-liter cut in fuel duty to help motorists, but the RAC said that of 15 European Union countries that have not taken action to reduce fuel prices since March, six already charged less fuel duty than the UK, even after the 5 p-a-litre cut.

The UK pump prices may be starting to fall but the reductions so far are too little and too late given the huge wholesale price drops retailers have been benefiting from for nearly two months.

We wanted the government to go further to reduce the prices for drivers because it clearly has the scope and it's benefitting from the VAT take because the higher the wholesale price goes, the more the chancellor collects. We also introduced our biggest ever cut in fuel duty, saving the average UK car driver around 100, the average van driver around 200 and haulier over 1,500. This is in addition to saving the typical employee over 330 a year through our National Insurance cut and allowing people on universal credit to keep 1,000 more of what they earn.