Fuel duty cut by 5p a litre in 2022 Spring Statement

Chancellor Rishi Sunak has confirmed that the 2022 budget will include cuts to fuel duty at 5p-a-litre until March 2023.

According to This Is Money, these cuts could save your typical family car around £3.30 each time they fill up. Cuts had been predicted after Sunak had publicly talked up the need for people in the UK to be able to afford to drive and rely on their vehicles.

Speaking at the House of Commons during today’s lunchtime announcement, Sunak confirmed what had been rumoured, with the cuts being actioned as of 18:00pm March 23.

Sunak said, "Today I can announce that for only the second time in 20 years, fuel duty will be cut. Not by one, not even by two, but by 5p per litre. The biggest cut to all fuel duty rates – ever."

Fuel duty has been frozen for over a decade under the current government, but Russia’s invasion of Ukraine has seen prices hit record highs in recent weeks.

Coupled with the rising cost of energy prices, the cost of living in the UK has been on an upward trajectory for some time.

As per Sky News, petrol prices have rocketed by 16p per litre in the last month and diesel by nearly 24p.

Sunak maintained a freeze on fuel prices back in his 2021 budget amid claims that it could be increased. These new cuts mark only the second cut to fuel duty in the last 20 years.

With fuel prices continuing to rise, there has been increased interest in electric car lease deals, with many road users looking for a more cost-effective driving experience.

What is fuel duty?

Fuel Duty is an indirect tax included in the price you pay at the pump for every litre of fuel put into your car.

The cost of the duty for petrol and diesel currently stands at 57.95p per litre and has been frozen at this price since 2011. Sunak’s latest cuts will see these prices drop to around 52p per litre.

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Ryan Darby

Ryan Darby

Ryan takes the lead on all things 'wordy'. With a sports media background, a true passion for cars, and a LOT of driving experience under his belt, he'll make sure you have all the information you need, when you need it.