It had been widely expected that the Chancellor would raise the current rate of 52.95p per litre, thus exposing transport operators to higher running costs.
David Wells, chief executive of business group Logistics UK, commented: “The sector operates on very narrow margins – often only 2.5% – with fuel representing a large proportion of the weekly operating cost for hauliers.”
There were joyful reactions from the AA and RAC too, with one spokesman likening the move to the ‘ultimate trick and treat’.
Edmund King, AA president, commented: “Drivers were worried that pre-Budget scares of hiked fuel duty may end in a nightmare, but the Chancellor has pulled off the ultimate trick and treat. Since Covid and the start of the Ukraine war, ‘perma-high’ pump prices have inflicted road fuel costs that were well above anything motorists had endured before. Today’s fuel duty freeze will be a big relief.”
Meanwhile, the RAC said drivers across the UK would breathe an enormous sigh of relief. Head of policy Simon Williams said: “It’s good to see the Government firmly recognising the importance of the car to millions of households up and down the country. Eight in 10 drivers tell us they are dependent on their vehicles for the journeys they need to make, while 70% of commuters who live in rural areas have no other feasible alternatives to get to work beyond taking the car.
“It’s also worth remembering that even as of today 56% of the total price of a litre of petrol is already tax in the form of fuel duty, and the VAT that is charged on top.”
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