- Costs lower for millions of drivers as government holds pump
prices down, extending the 5p fuel
duty cut until the end of year
- Hauliers get a 12-month road tax holiday saving up to
£912 per vehicle, red diesel slashed to
its lowest rate in over 20 years until the end of the
year
- Chancellor keeps taxes down for
drivers after strong growth at the start of
the year, showing government has right economic
plan.
Britain's motorists and businesses will get help with rising
prices at the pumps with a targeted package
to keep taxes down and support
people with the impact of war in Iran.
The Government has today (May 20)
announced, the 5p cut on fuel
duty will be extended for the rest of the
year.
In total, by the end of this
year the cut will have saved the average
driver £120 since 2025. This ensures fuel
duty on petrol and diesel remains at its lowest rate
for over 16 years.
The conflict has also pushed up costs for hauliers who keep
Britain's shelves stocked and its economy moving. The Chancellor
is giving them a 12-month road tax holiday – meaning they will
pay £1 at renewal, saving £600 for a typical heavy lorry and
£912 for the biggest vehicles on the road.
Farmers, rail freight, and other red diesel users will also see
their fuel duty cut by over a third until the end of the year.
This is the lowest rate in over 20 years, helping to keep the
cost of doing business down at a difficult time when
red diesel prices are around 50% more than their
pre-crisis levels.
Since the start of the Iran conflict, the government has been
clear that it will not make kneejerk decisions
that could impact on financial stability. The
package of support brought forward is timely and
targeted.
Prime Minister said:
“I know many are feeling the pressure of energy and
fuel costs, and are worried about how the conflict in
Iran will affect their finances. Because when global events drive
up prices, it's working people who feel it first.
"That's why this government is stepping in to keep fuel
costs down for millions of drivers and putting money back in the
pockets of working people.”
Chancellor of the Exchequer said:
"I'm keeping taxes down for drivers and businesses – putting
money in the pockets of millions of workers and cutting
costs for farmers and hauliers.
“The war in Iran is pushing
up fuel prices here at home but
after strong growth at the beginning of the year,
I am stepping in to protect people at the pump
“By protecting households and businesses we are building a
stronger and more secure economy for Britain. That is the right
economic plan.”
Notes to editors
- The 5p cut to fuel duty will be extended to 31 December.
It was due
to gradually unwind from 1 September.
- The fuel duty rate on red diesel will also be cut by
over a third from 10.18p to 6.48p per litre from 15 June until
the end of the year. This will support agriculture, rail freight,
and other users of red diesel and rebated fuels.
- Recognising the importance of the haulage sector to supply
chains and on consumer prices, we are going further supporting
hauliers through a holiday for their HGV VED for 12 months. This
means when hauliers renew their HVG VED they will
pay just one pound, saving £600 for a
typical heavy lorry and £912 for the HGVs with the
highest VED liability.
- Farmers, rail freight, and other red diesel users will also
see their fuel duty cut by over a third from 10.18p to 6.48p per
litre until the end of the year.
