Closed petition Reduce fuel duty and VAT by 40% for a period of 2 years
The Government should reduce the cost of fuel through a reduction of 40% in fuel duty and VAT for 2 years. This can effectively offset the rise in fuel prices since 2020.
More details
The price of diesel and petrol is at an 8-year-high. While the people are accepting the conversion to electric vehicles, the anticipated 30% + rise in fuel costs along with the price of new electric vehicles is a strain for the UK public. We believe people may understand to a degree the need for tax following the pandemic however prices of £1.50 or more per litre will cancel out any understanding. The Government has the ability to sacrifice some revenue to appease the British public.
This petition is closed All petitions run for 6 months
Parliament debated this topic
This topic was debated on 23 May 2022
Government responded
This response was given on 17 November 2021
The Government is taking targeted action to help families across the UK with the cost of living, which includes freezing fuel duty in 2022-23, the twelfth consecutive year.
Read the response in full
Crude oil prices and petrol pump prices regularly fluctuate, and there has been significant volatility in oil and gas prices over the last few months. The Government does not set the prices paid at the pump, nor wider oil prices. The degree to which petrol pump prices respond to changes in crude oil prices is a commercial matter.
Recognising that fuel is a major cost for households and businesses, the Government announced at the recent Autumn Budget that fuel duty rates would remain frozen at 57.95 pence per litre in 2022-23. As a result of twelve consecutive years of frozen fuel duty rates, the average UK car driver will have saved a cumulative £1,900 by the end of 2022-23, compared to the pre-2010 escalator. This is part of wider targeted action to help with the cost of living. A freeze already represents a cut in real terms and comes at a cost to the Exchequer of almost £8 billion over the next five years. Revenues from fuel duty help to fund essential services, like our schools and the NHS. It is important that we safeguard those revenues for the sake of our first-class public services.
Regarding VAT, this is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services including road fuel. While there are exceptions to the standard rate, these have always been limited by both legal and fiscal considerations.
Whilst the rationale of this petition is appreciated, any reform to the current VAT treatment of road fuel would carry a significant cost to the Exchequer, and this should also be seen in the context of the over £50 billion of requests for reliefs from VAT received since the EU referendum. Such costs would have to be balanced by increased taxes elsewhere, increased borrowing or reductions in Government spending. Given this, there are no current plans to change the current VAT treatment of road fuel.
HM Treasury
Related activity
Taxes on motor fuel to be debated by MPs
The MPs on the Petitions Committee have agreed to schedule a debate on a petition relating to taxes on motor fuel, which you signed.
The debate will take place on Monday 23 May at 6pm. Tonia Antoniazzi MP, a member of the Committee, has been asked by the Committee to open the debate. A Minister from the Treasury will respond for the Government.
Share your experiences of rising fuel costs with MPs
Ahead of the debate, Tonia would like to know how recent increases in the cost of fuel have affected you.
Share your views with Tonia by completing this short survey: https://www.smartsurvey.co.uk/s/R15BO6/
The survey will remain open until 9am on Monday 9 May.
A summary of your responses will be shared with MPs, and your answers may be quoted during the debate. This summary will also be published on the Petitions Committee website here:
https://committees.parliament.uk/committee/326/petitions-committee/publications/written-evidence.
Follow the debate
You can watch the debate live, or read a transcript of the debate a few hours after it ends.
Watch the debate (from 6pm, Mon 23 May):
https://www.youtube.com/watch?v=02SzHridKLY
Read the debate transcript (available a few hours after the debate has ended):
https://hansard.parliament.uk/commons/2022-05-23
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The cost of fuel has had a 'significant' effect on petitioners' lives, say survey respondents
On Monday 23 May, MPs will debate a petition calling for taxes on motor fuel to be reduced, which you signed.
To inform the debate, the Petitions Committee surveyed petitioners on how rising fuel prices are affecting them. We received over 2,300 responses, and a summary has been shared with MPs ahead of the debate. Thanks to everyone who took part!
Through the survey, the Committee heard:
- Despite rising costs, many respondents said they have to drive for their job, or to access essential services
- 62% of respondents said rising fuel costs have had a 'significant effect' on their social life
- 38% said fuel prices have had a 'significant effect' on their ability to do their job or run their business
- Many respondents told us they are having to make difficult sacrifices to get by
- Many called for the Government to do more to reduce the cost of driving
Read a full summary of what petitioners told us: https://committees.parliament.uk/writtenevidence/108518/default/
Watch the debate (from 6pm on Monday 23 May): https://www.youtube.com/watch?v=02SzHridKLY
Read a transcript of everything that's said in the debate (available a few hours after the debate has ended): https://hansard.parliament.uk/commons/2022-05-23
Read House of Commons Library research on this issue:
- Taxation of road fuels: https://commonslibrary.parliament.uk/research-briefings/sn00824/
- Petrol and diesel prices: https://commonslibrary.parliament.uk/research-briefings/sn04712/
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Taxes on motor fuel debated by MPs
On Monday 23 May, MPs debated a petition calling for fuel duty and VAT to be reduced by 40%, which you signed. The debate was opened by Petitions Committee member Tonia Antoniazzi MP, and Treasury Secretary Helen Whately MP responded for the Government.
Watch the debate:
https://www.youtube.com/watch?v=02SzHridKLY
Read the transcript: https://hansard.parliament.uk/commons/2022-05-23/debates/2262D058-1473-4F28-9CE1-712000724203/TaxesOnMotorFuel
Read House of Commons Library research on this issue: https://commonslibrary.parliament.uk/research-briefings/sn00824/
During the debate, MPs discussed petitioners' concerns about rising fuel costs, the impact of the recent 5p per litre cut in fuel duty, and wider concerns about the cost of living.
Responses to the Petitions Committee's survey of petitioners on this issue were quoted by Tonia Antoniazzi and Shadow Treasury Minister James Murray MP during the debate. Thanks again to the over 2,300 people who responded.
Read a summary of what petitioners told us: https://committees.parliament.uk/writtenevidence/108518/default/
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Sign up to the Your UK Parliament newsletter for the latest information on how to get involved and make a difference: https://parliament.us16.list-manage.com/subscribe?u=3ad7e4c57a864f07e4db008c4&id=26d0645ea9
The role of taxes in tackling rises in the cost of living debated by MPs
On Wednesday 25 May, MPs took part in a Westminster Hall debate on the Government's fiscal approach to tackling rises in the cost of living. The debate was led by Dan Jarvis MP, and Treasury Minister Lucy Frazer MP responded for the Government.
During the debate, MPs discussed how changes to fiscal policy - the use of Government spending and taxation to influence the economy - could help reduce the impact of rises in the cost of living, including increased domestic energy and motor fuel prices. Calls to raise the national living wage, and increase pay for public sector workers, were also discussed.
Watch the debate: https://www.parliamentlive.tv/Event/Index/99f393a0-5fd2-479c-ab5e-4f6f82446203
Read the transcript of everything that was said in the debate: https://hansard.parliament.uk/commons/2022-05-25/debates/0394B2D1-96F0-446F-8F1C-E69D0368AE30/CostOfLivingFiscalApproach
What is a Westminster Hall debate?
Westminster Hall is the second chamber of the House of Commons. Westminster Hall debates give MPs an opportunity to raise local and national issues and receive a response from a government minister. Westminster Hall debates are general debates that do not end in a vote.
Find out more about Westminster Hall debates: https://www.parliament.uk/about/how/business/debates/westminster-hall-debates/
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Government confirms 12-month fuel duty freeze
On Wednesday 15 March, the Government announced that it would be freezing fuel duty for 12 months, including keeping the 5p per litre cut in place.
Find out more about the fuel duty freeze in the Government's Fuel Duty Factsheet.
The fuel duty freeze was announced as part of the Spring Budget. The Chancellor told the House of Commons that because inflation remains high, he has decided that now is not the right time to uprate fuel duty with inflation or increase the duty.
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Government confirms 12-month fuel duty freeze
On Wednesday 6 March, the Government announced that it would be freezing fuel duty for 12 months, including keeping the 5p per litre cut introduced in 2022 in place.
Find out more about the fuel duty freeze in the Government's Policy Paper.
The fuel duty freeze was announced as part of the Spring Budget. The Chancellor told the House of Commons that the freeze will save the average car driver £50 next year, and bring total savings since the 5p cut was introduced to around £250.
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