Rishi Sunak announced a five pence reduction in fuel duty during his Spring Statement on Wednesday, which is set to last 12 months. While many were satisfied that the Chancellor made the change, others were concerned that the savings would not be passed onto drivers.
Paul Holland, MD of UK Fuel at Allstar Business Solutions, praised the move, but warned that many drivers may still be massively impacted by the high fuel prices.
Speaking to Express.co.uk, he said: “In ordinary circumstances we might have expected fuel duty to remain high, in order to incentivise a move to cleaner fuels, as the Government is still very much committed to decarbonisation and switching to electric vehicles (EVs).
“However, we have rightly seen the UK Government follow other countries in reducing fuel duty, in order to keep the price at the pump from rising to the point that everyday life and business operations are affected further.
“There was considerable pressure on the Government to address the rising cost of living crisis and the pressure this will exert on both the general public as well as the UK’s businesses.
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“Although major companies with significant credit might be able to weather the storm, smaller companies may not.
“Lenders can respond by being more lenient with lending terms, but there are going to be limits to this.
“Select fuel cards, such as our own, are able to provide some level of stability and cost reduction, as we are one of the few providers that base prices on the price at the pump rather than the price of a barrel of oil.
“By intelligently using the different methods available to them, including lines of credit and fuel cards, fleet operators can make the best of this difficult time.
“The return to normalcy won’t be quick, but it will come and support is available to get the industry there.”
Latest data from RAC Fuel Watch shows that the average price for a litre of petrol now costs 167.01p with diesel standing at 179.9p per litre, as both “should fall”.