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Fuel Duty Increase Deferred


The 3.02 pence per litre (ppl) fuel duty increase that was due to take effect on 1 January 2012 will be deferred to 1 August 2012. In addition, the increase that was planned for 1 August 2012 will be cancelled. On 1 August 2012, the duty rate for leaded petrol and compressed natural gas will change by the same monetary amount as main fuel duty, and the duty rate for aviation gasoline and rebated oils will change in proportion to the main rate. The duty differential for liquefied petroleum gas will be maintained until 1 August 2012, when it will be reduced by 1ppl.

The 5ppl discount for the Inner and Outer Hebrides, the Northern Isles, the islands in the Clyde and the Isles of Scilly will, in addition, come into force on 1 March 2012.

The Government will publish details of the design of the fair fuel stabiliser at Budget 2012.

FTA comment: The Chancellorís decision will provide a much needed lifeline to many businesses as the price of diesel has risen by over 13ppl (13.9 per cent) in the last year, representing an extra £1.4 billion cost to road freight operators. However, the Chancellor has not been bold enough. He should have ruled out the planned 3 pence per litre duty rise in August 2012 as, if world oil prices remain high and above $100 per barrel into next year, it will still hit industry hard.