- 3rd October 2018
- Posted by: Suzy Hill
- Category: Business News
Fuel duty freeze to continue
The government has frozen fuel duty for the ninth year in a row in a move that it says will make life easier for ‘hardworking families’
Prime Minister Theresa May will announce the freeze today as part of her speech to the Conservative Party conference in Birmingham.
May will say it is aimed at: ‘…the people for whom this party must deliver’ and add that a car is ‘not a luxury’ for millions of people.
She will say the freeze will allow families to have a ‘little bit of money left to put away at the end of each month’.
‘It’s the joy and precious memories that a week’s holiday with the family brings. It’s the peace of mind that comes with having some savings. Many people in towns and cities across our country cannot take these for granted. They are the people this party exists for. They are the people for whom this party must deliver.
‘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. Money in the pockets of hard working people from a Conservative government that is on their side,’ says May.
The move will have a significant impact on the public purse. Last month, Chancellor Philip Hammond said the fuel duty freeze, while saving drivers money, would cost the Treasury £38bn if it continued for another three years.
The Green Party criticised the move, saying the money could be better spent on public transport and promoting walking and cycling.
The average UK petrol price is currently 130.6p per litre, with diesel at 134.5p with 61% of the price of petrol and nearly 60% of the price of diesel taken up by tax.
In the past year, average petrol prices have gone up by 11.5p a litre, with diesel up by 14p a litre.