MSE News

Fuel duty frozen for ninth year

Fuel duty is to be frozen for the ninth year in a row, the Prime Minister will announce today. 

Theresa May will announce the freeze during her speech at the Conservative Party Conference in Birmingham, claiming the move will put "money in the pockets of hard-working people". 

The announcement comes as the most recent figures from the RAC Foundation show drivers are facing some of the highest fuel prices we've seen in more than four years. 

For more info on cutting fuel costs, see our Cheap Petrol & Diesel guide. 

What is fuel duty?

Fuel duty is a tax which is paid on most fuels – since March 2011, it has stood at 57.95p per litre of petrol, diesel, biodiesel and bioethanol. 

VAT, which is currently 20%, is also added to the total price of the fuel. 

Data from the RAC Foundation says that 59.6% of the pump price of diesel and 61.2% of the pump price of unleaded petrol is made up of tax. 

According to the Office for Budget Responsibility, fuel duty will bring in £28.2 billion for the Treasury in 2018/19, equivalent to £1,000 per household.

What will the Prime Minister say?

May will say: "Some have wondered if there would be a thaw in our fuel duty freeze this year.

"Today I can confirm that, in the Budget later this month, the Chancellor will freeze fuel duty again."

MSE weekly email

FREE weekly MoneySaving email

For all the latest deals, guides and loopholes simply sign up today – it's spam-free!