Budget 2024: Petrol change update is relief for drivers as fuel duty frozen again

Rachel Reeves has spared millions of drivers a hike in fuel duty in her Autumn .

Fuel duty has been frozen since 2011 and was then cut by 5p to its current rate of 52.95p per litre. The Chancellor also confirmed she will extend the 5p cut beyond March 2025, when it had been due to come to an end. Fuel duty is a tax that is levied on petrol, diesel, natural gas and other fuels in the UK.

reached a record high of 191.5p per litre in the summer of 2022 following the Russian invasion of . The average price for petrol today is 135.32p per litre, according to RAC.

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The Chancellor said: "In these difficult circumstances increasing fuel duty would be the wrong choice for working people." The freeze will remain in place for next year, with Ms Reeves adding: "There will be no higher taxes at the petrol pump next year." The change, she said, would save motorists up to £60 per year.

She said: "I have today decided to freeze fuel duty next year and I will maintain the existing 5p cut for another year, too. There will be no higher taxes at the petrol pumps next year." In an official announcement posted on X, formerly , the HM Treasury said the government rate freeze would "protect working people and those in local communities".

The post reads: "The government will protect working people and those in local communities by freezing fuel duty next year. This is a tax cut worth £3bn and will save motorists almost £60 a year."

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