Diesel drivers hit with new 69p per litre charges | Tech News
Diesel drivers will quickly be paying 69p more per litre when filling up their vehicles. It comes as Chancellor Rachel Reeves introduced the top to the fuel obligation freeze. The tax, which is included within the price of petrol, diesel and different fuels, at the moment stands at 52.95p per litre, however can be 57.95p by March 2027.
The 5p freeze can be reverted in phases, beginning with a 1p-per-litre increase, and adopted by a 2p-per-litre increase on December 1, 2026 and March 1, 2027. However, along with the fuel obligation, motorists are additionally set to pay a additional 20% VAT on the fuel obligation.
The Office for Budget Responsibility (OBR) defined: “VAT is applied after fuel duty, so, for example, the pump price of a litre of petrol currently reflects the pre-tax price plus 52.95p for fuel duty plus 20% VAT on the pre-tax price and a further 10.59p for VAT at 20% on fuel duty.”
VAT is utilized after Fuel Duty at a price of 20%, that means that when Fuel Duty rises to 57.95p, it’s going to have a VAT of 11.59p, giving a complete of 69.54p per litre.
The OBR additionally notes that fuel duties “represent a significant source of revenue for the Government”.
It added: “In 2025-26, we expect fuel duties to raise £24.4 billion. That would represent 2.0% of all receipts and is equivalent to £850 per household and 0.8% of national income.”
Rachel Reeves recieved critism lifting the fuel obligation freeze.
Shadow Chancellor Sir Mel Stride mentioned: “Now after just one year Labour are putting up the duty and reaching into the pockets of commuters and hardworking families — all because they are too weak to control spending.”
The Chancellor additionally introduced a new pay-per-mile charge for electric vehicles and plug-in hybrids. Electric automobiles can be charged 3p per mile, whereas the charge for plug-in hybrids is half of what it’s for EVs, at 1.5p.
The charge can be rolled out from 2028.
Stay forward of the curve with the most recent developments within the automotive world! Our web site is your final vacation spot for car information, delivering complete updates, in-depth market evaluation, and skilled insights into the fast-evolving automotive industry. We carry you day by day protection on every little thing from breakthrough vehicle applied sciences and industry trends to main bulletins which are driving the longer term of transportation.
Discover how these trends are reworking the street forward! Visit us usually for participating and informative content material by clicking right here. Our meticulously curated articles cowl market trends, investment methods, and key milestones in right now’s quickly evolving car panorama.
