Debate to be held in Commons on Monday in reaction to petition over soaring cost of petrol and diesel
Fuel duty was recently cut by 5p but real-world cost remains high
The UK government will consider slashing fuel duty and VAT by 40% for two years in a debate to be held on Monday (23 May).
A petition calling for the reduction closed on 18 April with 102,133 signatures. Once a petition receives 100,000 signatures, it will be debated by MPs in the House of Commons.
The petition says that by implementing this change, the government could effectively “offset the rise in fuel prices since 2020”.
Just this morning (19 May), the RAC announced the average UK price of petrol and diesel had hit new records of 168.24p and 181p per litre respectively. For the year to date, the price of petrol has risen 25p and diesel 32p.
The RAC said “wholesale prices dropped on Wednesday, indicating we may have passed the peak” but also said retailers who have had to buy new stock will pass on increased costs to the consumer over the coming days.
“Drivers badly need further help from the government, particularly as the treasury is benefitting considerably from the windfall that 20% VAT brings them on these record high prices”, said the organisation.
Tonia Antoniazzi, Labour MP for Gower, will open the debate, while exchequer secretary to the treasury Helen Whateley will respond for the government.
The government said in November last year it was “taking targeted action to help families across the UK with the cost of living, which includes freezing fuel duty in 2022-23, the 12th consecutive year.”
In a survey of petitioners conducted ahead of Monday’s debate, many respondents said they had to drive to get to work or access essential services, some 62% said rising fuel costs have a “significant effect” on their social lives, 38% said their ability to work had been impacted and many said they were making “difficult sacrifices” to compensate.
In recent days, the government has also expressed concern that petrol retailers are not passing on a recent cut in fuel duty to consumers.
A 5p per litre reduction in fuel duty was implemented in March in an effort to compensate for raised costs as a result of the war in Ukraine, but business secretary Kwasi Kwarteng said in a letter to retailers yesterday that it “does not appear to have been passed through to forecourt prices in any visible or meaningful way”.
Keyword: Government to debate slashing fuel duty and VAT by 40%