5p fuel duty increase still on the cards

JEREMY Hunt has still not ruled out hiking fuel duty in this month’s Spring Budget, it emerged yesterday.

The Chancellor is expected to extend support with household energy bills for another three months, but sources close to him say he ‘hasn’t made a decision’ over fuel duty.

Drivers face paying an extra £3billion at the pumps over the next year if Mr Hunt reverses a 5p fuel duty cut. The reduction was brought in last March by then-chancellor Rishi Sunak as drivers faced record fuel prices sparked by the war in Ukraine.

But average pump prices have since tumbled below what they were last March, fuelling fears Mr Hunt will reverse the 5p cut. Motoring groups last night said restoring the cut would affect those struggling with the soaring cost of living.

AA president Edmund King said: ‘Reinstating the 5p will push many over the edge in the current cost of living crisis.

‘Vehicle fuel is not a luxury so shouldn’t be taxed as one. Increasing fuel duty will just fuel inflation.’