In his 2016 Budget, revealed yesterday, George Osborne announced that despite the fluctuating cost of petrol and diesel, fuel duty is to remain the same over 2016 and 2017.

For the sixth year in a row, the duty will be frozen at 57.95p, as the Chancellor of the Exchequer believes that motorists shouldn’t be penalised for the state of the oil industry, which has been struggling since the prices of fuel plunged.

The duty still makes up the majority of the price of petrol and diesel, which currently cost around 103.23p and 103.75p per litre respectively. Drivers also pay 20 per cent VAT on those fuels.

Addressing the Commons on Wednesday afternoon, the Chancellor referred to the duty as ‘the tax that keeps Britons on the move’.

Osborne had been expected to raise the fuel duty, which last saw a change in the March 2011 Budget when it was cut by a penny. Only last July, in the Summer 2015 Budget, he scrapped a planned fuel duty increase which was due to commence on September 1.?

His decision not to raise the duty also went against the planned fuel duty rise he had omitted to mention in the Autumn statement towards the end of last year.

'In the last 12 months petrol prices have plummeted. That is why we pencilled in an inflation rise,' he commented.

'But I know that fuel costs still make up a significant part of household budgets and weigh heavily on small firms.

'Families paid the cost when oil prices rocketed; they shouldn't be penalised when oil prices fall.'

Osborne claimed the fuel duty freeze will result in average annual savings of £75 for drivers and £270 for small businesses who run one van.

Author: Laura Thomson

Jack Evans


After completing his university studies in English and Creative Writing in Cardiff, Jack is now a full time motoring writer at Blackball Media. His love of cars stems from his childhood years when he began to live and breathe all-things automotive.

March 17, 2016