One-in-three drivers favour VAT cut amid spiralling fuel costs – RAC
Contrasts the 29 per cent of drivers who would prefer a cut to fuel duty.
One in three drivers would prefer to see a cut in VAT over a reduction in fuel duty as the prices of petrol and diesel continue to remain at record levels.
That’s according to the RAC, which found that more would rather see Chancellor John Healey announce a cut to the VAT on fuel at this week’s budget than a reduction in duty. Some one-in-ten would prefer fuel duty – which is set to rise by 5p next March – simply held at its reduced rate of 52.95p a litre, though 29 per cent would rather a further cut.
Petrol and diesel prices have continued to rise this year, largely as a result of the conflict between the US and Iran, as well as disruption to global diesel supplies caused by Russia’s war in Ukraine. Diesel pushed past the record price of £2 a litre earlier this month, while average unleaded prices stand at £1.75 a litre, its highest in more than four years.
RAC analysis found that a further 2p-per-litre cut in fuel duty would save drivers £1.30 on a tank full of fuel in an average-sized car, while a 5p cut would save them £3.30 per tank.
Sixty-five per cent of the 1,206 motorists surveyed by the RAC say they’re cutting back on other spending because of the cost of fuel, up from 61 per cent in April. In addition, 47 per cent say that they’re struggling to cope with costs now, up from 39 per cent in April.
RAC senior policy officer Rod Dennis said: “The status quo, which would see fuel duty increase by 5p by the Spring and leave drivers faced with even higher pump prices, feels unsustainable, so we very much hope it’s a question of ‘how’ they are supported in Wednesday’s Budget, and not ‘if’.
“It’s easy to forget that fuel duty is already lower than it was several years ago, given it was cut by 5p in the early days of the Ukraine war. But this hasn’t stopped prices spiralling this year as a result of the ongoing conflicts in the Middle East.
“An end to hostilities and a lower oil price would deliver the greatest relief at the pumps, but this isn’t something that’s ultimately in the UK’s control. The extent to which drivers are taxed, however, most certainly is.”