The AA has warned that eliminating the 5p fuel duty cut in the Budget could lead to “perma-high” petrol prices for drivers in the coming years.
The motoring group predicts that motorists would face an immediate increase of £3.30 on the average tank of fuel if the cut is removed.
Recent figures from the AA show that petrol prices have dropped to their lowest level in nearly three years, reaching 139.5p a litre— the lowest since October 2021—due to falling oil prices. The AA attributes this drop to the 5p fuel duty cut.
Edmund King, AA President, stated, “The only reason pump prices are nearly at a three-year low this week is because of the 5p fuel duty cut. Removing it could push millions of low-income drivers back into a period of consistently high fuel prices.”
Last week, Sir Keir Starmer did not rule out the possibility of a fuel duty increase when the Chancellor presents her first Budget on October 30.
