Petrol prices have fallen just 2.71p, and diesel down 1.59p, despite Rishi Sunak saying a 5p fuel cut comes into effect from 6pm on Wednesday, research from The AA found. Research from the motoring organisation found the average petrol price across the UK was 164.59p a litre while diesel was 178.72p a litre after the Government’s reduction came into effect.
This is a slight decrease from Tuesday, when petrol and diesel pump prices jumped to new records of 167.30p and 179.72p a litre.
The 5p-a-litre reduction in fuel duty came into force at 6pm on Wednesday after the chancellor announced the measure in his spring statement amid the soaring cost of living.
Mr Sunak had said on Wednesday that fuel duty would be cut from 6pm reducing costs by 5p, worth 6p once VAT is added, until March 2023.
Luke Bosdet, the AA’s fuel price spokesman told Sky News: “The chancellor rode to the rescue of drivers on Wednesday and, even before the 6pm start of the fuel duty cut, drivers were reporting the price cut at some Asda forecourts.
“However, on Thursday, the average price of petrol showed that less than half (2.71p) of the fuel duty cut had been passed on to drivers.”
Drivers have faced record pump prices since Russia’s invasion of Ukraine led to an increase in the cost of oil.
The Chancellor promised to alleviate the burden on motorists by announcing the biggest reduction to fuel duty rates “ever”.
Mr Sunak told MPs on Wednesday: “Today, I can announce that for only the second time in 20 years, fuel duty will be cut.
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“Not by one, not even by two, but by 5p per litre.”
The RAC criticised the chancellor for not going far enough, with head of policy, Nicholas Lyes, describing the cut as “a drop in the ocean” as it will “only take prices back to where they were just over a week ago”.
While Mr Bosdet said we have to accept that, for many forecourts, the duty cut will come through with the next delivery of fuel, he agreed the size of the fall is very disappointing.
While the chancellor’s spring statement offered some tax cuts, including a £3,000 increase in the threshold for national insurance contributions, it has received widespread criticism for failing to support poorer families and other vulnerable groups from soaring inflation.
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The New Economics Foundation said only 7 percent of the savings from cutting fuel duty would go to the poorest fifth of households, given that more than half do not have a car.
However, a third of the savings from the fuel duty cut will go to the richest fifth of households.