IAM RoadSmart calls for fuel duty freeze
Road safety charity IAM RoadSmart has joined calls to postpone planned rises to the fuel duty in a bid to alleviate pressure on business fleets.
From 1 January next year the government is set to gradually reverse the temporary 5p-per-litre fuel duty cut first introduced in March 2022, which will see duty for both petrol and diesel vehicles rise from 52.95p-per-litre to 55.95p-per-litre, excluding VAT.
This means that a business with a small fleet of 10 vehicles and an annual fuel consumption of approximately of 26,000 litres in both diesel and petrol, could expect to pay almost £800 extra a year on top of their existing operating costs.
Ahead of the Autumn Budget on 28 October, Nicholas Lyes, director of policy and external communications at IAM RoadSmart, said: “Many businesses are struggling with record high diesel prices, and the planned increase in duty pencilled in for the New Year will be a kick in the teeth for firms and fleet managers already under intense pressure as costs mount.
“The Chancellor should consider postponing the proposed increase, not least because it would currently fall immediately after the Christmas period, which tends to be a particularly difficult cashflow period for many businesses.
“Delaying implementation would support business investment, avoid adding to inflationary pressures, and give fleet managers the time they need to adjust.”
