What is fuel duty and how much is it in the UK?

Chancellor Rachel Reeves is expected to code substance work successful the upcoming Autumn Budget.

Motorists are acrophobic that an summation to the taxation could beryllium 1 of the changes the Labour Party person planned for their archetypal Budget successful 14 years.

It is an country wherever the Conservative Party were generous during their clip successful government, with erstwhile Prime Minister Rishi Sunak announcing a 5p cut successful 2022.

However, up of the Autumn Budget connected October 30, substance work is expected to emergence by up to 7p a litre.

But what is substance work and however overmuch is it successful the UK?

What is substance duty?

Fuel work is simply a taxation charged by the government and is included successful the terms consumers wage for petrol, diesel and different fuels utilized successful vehicles and for heating. 

You besides pay standard complaint VAT at 20% connected astir fuel, oregon the reduced complaint of 5% connected home heating fuel.

The terms of substance is impacted by a fig of factors, including the terms of crude oil, proviso and demand, and substance work charged by the government.

How overmuch is substance work successful the UK?

Fuel work rates alteration based connected the benignant of fuel. The existent rates are arsenic follows:

• Petrol, diesel, biodiesel and bioethanol – 52.95p per litre
• Liquefied petroleum state (LPG) – 28.88p per kg
• Natural gas – 22.57p per kg
• Fuel lipid (burned successful a furnace oregon utilized for heating) – 9.78p per litre

The taxation is worthy astir £25bn a twelvemonth to the exchequer, but the Campaign for Better Transport says ending the 5p chopped successful substance work could rise £2.6bn a year.

Meanwhile, a authorities root quoted successful MailOnline said: ‘Ms Reeves’ officials are telling her it’s present oregon ne'er connected substance duty. The Treasury ever hated the substance work frost and is determined to get escaped of it.

‘They are advising her that motorists tin spend it and that if she doesn’t enactment to extremity the frost present she volition find it overmuch harder to bash truthful aboriginal successful the parliament.’

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