The Transport Secretary has responded to criticism over the decision to extend the fuel duty freeze as some motorists could struggle to deal with high petrol and diesel prices.
In the Autumn Budget, Chancellor Rachel Reeves announced that the Government would be retaining the five pence per litre freeze on the rate of fuel duty for another year.
The temporary 5p cut was extended for one year, at a cost to the Treasury of around £3billion. Estimates suggest that the continued freeze would save the average car driver £59 in 2025-26.
Earlier today, Transport Secretary Louise Haigh was asked about the Chancellor’s decision to freeze the rate of fuel duty, much to the surprise of many motorists.
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Louise Haigh said it was the right decision to help motorists with expensive fuel costs
PA
One of the Commons Transport Select Committee members questioned why fuel duty had been frozen when rail fares had increased and the £2 bus fare cap had been removed, especially at a time when the Government is moving towards using greener transport.
In response, Haigh said: “I understand from a pure transport policy perspective why there would be people that make the case for increasing fuel duty in order to encourage people out of their cars.
“But I think in the current context, it represents a significant cost of living issue for so many of our constituents.
“My take is, that in too many parts of the country at the moment, there aren’t the alternatives for lots of people.”
Transport Secretary Louise Haigh spoke during the Commons Transport Select Committee
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The latest data from RAC Fuel Watch shows that the current price of unleaded petrol is 135.46p per litre, while diesel drivers are paying an average of 140.47p.
The RAC, and other motoring experts, have forecast that petrol and diesel prices will not dramatically change in the near future.
Haigh also highlighted how certain jobs, like care workers, are entirely reliant on their car, regardless of whether they live and work in a city or a rural area.
Especially if they operate in shifts, the fuel duty freeze represented big savings, with Haigh saying this was a key motivator for Chancellor Rachel Reeves.
Haigh concluded: “Our ambition is absolutely to make public transport more affordable, but crucially more reliable.”
It is hoped that the continued 5p freeze will help motorists save at the pumps, especially ahead of the introduction of the Fuel Finder tool next year.
Following recommendations from the Competition and Markets Authority (CMA), the Government will move forward with its plan to implement an open data scheme for fuel prices, dubbed Fuel Finder.
Budget documents state that fuel prices are at the mercy of global factors, although there is optimism that the increased competition among supermarkets and major retailers could reduce pump prices by between one and six pence per litre.
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Petrol and diesel prices peaked in the summer of 2022 PAIt will allow motorists to see petrol and diesel price updates within 30 minutes of a change, with hopes that the scheme will be launched by the end of next year.