Fuel Duty increase is scrapped
March 21, 2013
George Osborne, delivered his 2013 Budget statement yesterday and the good news for drivers is that the 1.89p pet litre fuel duty hike has been scrapped. 

The increase was due to be taking place from September 1st but has actually been cancelled altogether. Instead, the fuel duty rates will remain at 57.95 ppl until September of next year. This is a decision that is likely to cost the Treasury around £1 Billion in lost revenue throughout the next year. 

This news comes as rather welcome relief to motorists in Britain, who have got used to petrol prices soaring as much as 138.32ppl in February. George Osborne said that together with the people of Britain, we are slowely but surely, fixing the economic problems of our Country. 

By scrapping the fuel tax increase, petrol will be 13ppl cheaper than if fuel duty had not been frozen, over the last 2 years. According to George Osborne, the savings will be substantial. For the likes of a Ford Focus or a Vauxhall Astra, it is around £7.00 less each time you fill up. He went on to say that they inherited a fuel duty escalator that would have seen over inflation increases, in every year of this parliament. The escalator has been abolished and  fuel duty has been frozen for 2 years. He expressed that this has not been easy as the Government has foregone around £6 Billion in revenue up to now. 

The president of the AA Edmund King has welcomed the news, however he expressed that it was with relief rather than joy. 

Director of the RAC foundation, Professor Stephen Glaister has said that through this move, the Chancellor will lose around £1 Billion a year in fuel duty and VAT income, though tens of thousands of motorists will be saved from having to give up their cars. He went on to say that it is welcomed that George Osborne has actually listened to the Countries 35 million concerns about the inflammatory issue, of near record prices at the pump.

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