Five pence cut to fuel duty announced in Spring Statement

The Chancellor of the Exchequer Rishi Sunak has delivered his Spring Statement, announcing a 5p cut to fuel duty amid rising fuel prices.

The change is to come into force at 18:00G tonight.

Elizabeth de Jong, Director of Policy at Logistics UK, comments: “With average fuel prices reaching the highest level on record and rising inflation, there has been an unstainable burden on logistics businesses which operate on very narrow margins of around 1%; the Chancellor’s decision today will help to ensure operators can continue to afford supplying the nation with all the goods it needs, including food, medicine and other essential items. 

"Fuel is the single biggest expense incurred by logistics operators, accounting for a third of the annual operating cost of an HGV. The cut in fuel duty of 5ppl will result in an average saving of £2,356 per year per 44-tonne truck; this move will help to strengthen the UK’s supply chain during a time of ongoing financial and operational challenges.”

Nick McClellan, managing director at RAM Tracking, said: “The cut in fuel duties by 5p per litre announced in today’s spring statement is welcome news and could amount to saving of around £87 per vehicle per year or over £600 per year for an SME fleet of seven vehicles.

“Fuel duty adds almost 58p per litre to the price of fuel and with prices in the UK having recently hitting a new record high, with the average cost of petrol at £1.65 a litre and diesel £1.76 a litre, this reduction is badly needed for drivers and is unsustainable for many small and medium sized business.”