Autumn Statement reaction: Fuel duty

RAC chief engineer David Bizley said: “Motorists may be relieved that the Chancellor has not used low fuel prices as an immediate opportunity to raise duty on petrol and diesel to help reduce the deficit.

“But by not mentioning fuel duty in his Autumn Statement, the implication is that the 57.95p charged on every litre currently will be subject to inflationary increases in line with RPI from April 2016 onwards.

“This will go down like a lead balloon with motorists who have been benefitting from lower pump prices as oil prices have fallen. It also goes completely against the Treasury’s own findings that lower fuel prices are good for the economy and an extremely inefficient way of raising additional taxation revenues for the Treasury.

“Motorists already pay £26bn in fuel duty per year so any increase to this tax on petrol and diesel will be hugely disappointing and a backward step which will prove damaging to the economy in the longer term.”

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The RAC Media Centre provides journalists and news outlets with the latest motoring-related news, comment, data and research.

The RAC is an iconic UK brand, and provides complete peace of mind to nearly 14 million UK private and business drivers - whatever their motoring needs. As well as its premium nationwide breakdown assistance service – with an expert branded patrol workforce attending more than two million breakdowns every year – and European breakdown assistance products, it offers a wide range of market-leading products across insurance, legal services, vehicle inspections and service, maintenance and repair. Included in this is the first-of-its-kind nationwide Mobile Mechanics service which brings the garage to homes and workplaces. 

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