UK's Healey extends freeze in fuel duty until at least July

UK’s Finance Minister John Healey Extends Fuel Duty Freeze to July 2024

Fuel Duty Freeze Extension and Its Implications

Announcement of Extension

LONDON, Oct 28 (Reuters) - Britain's finance minister John Healey said on Wednesday he would maintain a freeze on the level of fuel duty rates, extending a five-pence temporary cut introduced in 2022 until at least July.

Government Statement

"Earlier this year, the government extended the 5p cut to Fuel Duty and slashed red diesel to its lowest rate in over 20 years. With the war in the Middle East still driving high fuel prices, I am extending these tax cuts for motorists through the winter and spring to July," Healey said in his budget statement.

Background of the Fuel Duty Freeze

Duty paid on motor fuels has been frozen since 2011, except for the temporary cut which was introduced in 2022 when oil prices spiked after Russia's full-scale invasion of Ukraine. The freeze has been extended by successive governments.

Impact of Global Events on Fuel Prices

The conflict in the Middle East has pushed up oil prices this year with the RAC motoring body reporting that the average pump price of diesel in Britain hit record highs in recent weeks.

Economic Significance of Fuel Duty

Fuel duty is a major revenue-raiser for the government and brings in around £25 billion ($33 billion) a year.

Reporting Credits

(Reporting by David Milliken, writing by Alistair Smout; Editing by Kate Holton)