Experts have called on Chancellor Rachel Reeves to introduce new measures for petrol and diesel drivers that could slash emissions across the country.
The Chancellor is set to deliver the Autumn Budget at the end of November, with the Government already warning of tough decisions needing to be made.
Rachel Reeves already guaranteed a number of motoring pledges in the Autumn Budget last year, including new car tax rates, EV incentives and fuel duty.
She announced that Labour would extend the freeze on fuel duty for 2025-26, in a cut that would cost the Government £3billion, to help the average motorist save £59 a year.
The temporary five pence per litre cut was first introduced under Conservative Prime Minister Rishi Sunak in 2022 in response to spiralling fuel prices after the Russian invasion of Ukraine.
The freeze has been extended every year since then, with Chancellor Rachel Reeves most recently pledging to extend the cut by a further 12 months.
She also cancelled the planned rise in inflation for 2025-26, with the fuel duty cut set to expire on March 22, 2026.
However, experts are now calling on the Chancellor to take decisive action, after noting that the issue of fuel duty is constantly “kicked down the road” every year.
Chancellor Rachel Reeves has been urged to introduce new rules in the Autumn Budget
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PA
Paul Holland, Managing Director for UK/ANZ Fleet at Corpay, including UK brand, Allstar, said the Chancellor should cut fuel duty to help the Government focus on growth.
He added: “Fleets are on the frontline of costs. A penny on duty doesn’t just hit a business or fleet, it feeds straight through into the weekly shop, the cost of a parcel, the price of a pint of milk.
“Keeping the freeze is not some political gesture, it is about stopping inflation from creeping into every corner of the economy.”
The expert claimed that the fuel duty system was “stuck in the past” since cleaner fuels like HVO, which can cut emissions by up to 90 per cent compared to diesel, are charged the same rate as conventional fuel.
Mr Holland said the Autumn Budget was the “time to act” for the Government, as this would reward operators who want to switch to cleaner forms of transport.
He continued, saying: “Logistics makes up roughly a quarter of the UK’s transport emissions. Trucks and vans are essential, but they’re also a huge carbon contributor.
“We need a Budget that recognises fuel duty as a lever for growth and a lever for decarbonisation. Right now, the Government is leaving one of the simplest wins on the table. I say cut the duty where it makes sense, and businesses will do the rest.”
At present, drivers are paying an average of 135.19p per litre for unleaded petrol and more than £1.42 for diesel, according to data from RAC Fuel Watch.
The Fuel duty cut is currently frozen until March 2026
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GETTYWhile prices have come down since the fuel duty freeze was announced in 2022, the UK has seen costs spiral to their highest ever price, just a few months after it was introduced.
A HM Treasury spokesperson told GB News: “Our Plan for Change is putting more money in the pockets of working people.
“We extended the fuel duty cut this year, saving drivers £3billion, and increased the National Living Wage, giving a pay boost of up to £1,400 a year for millions of eligible workers.
“Changes to tax and spend policy are not the only ways of strengthening public finances, as seen with our planning reforms, which are expected to grow the economy by £6.8billion and cut borrowing by £3.4billion.”