Fuel duty increase
RAC head of policy Simon said: “Drivers will be relieved
the Chancellor has decided to keep the 5p duty cut in place for
now as it saves them more than £3 a tank. But this relief will be
very short-lived given the staggered increase from next
September.
“Without the discount, drivers would still be paying more for a
litre of petrol than they were prior to Russia's invasion of
Ukraine in February 2022 which sent pump prices rocketing to
record levels.
“The introduction of the long-awaited Fuel Finder in early 2026
will also be a big moment – for the first time, all petrol
stations will need to report their prices allowing customers to
find the cheapest fuel wherever they are.”
Pay-per-mile
RAC head of policy Simon said: “The Government will be
aware that taxing all plug-in vehicles per mile from 2028 could
slow down the transition to electric vehicles. This is no doubt
why it has expanded the Electric Car Grant.
“With fuel duty revenue set to decline as more EVs come on to the
road, this is one lever the Chancellor clearly feels she can pull
to keep the money coming in. The implementation will be critical,
so the devil is very much in the details.
“We note the Government hasn't cut VAT on public charging from
20% to 5% to match the rate levied on domestic electricity. This
means drivers who can't charge at home will continue to pay
more."
