Petrol stations failing to fully pass on Rishi Sunak's 5p fuel duty cut

Rishi Sunak's cut to fuel duty is not being fully passed on to motorists at the pumps, data from the RAC has revealed.

In March, the chancellor announced a new package of measures to help Brits struggling with the worsening cost-of-living crisis - including knocking 5p off fuel duty for 12 months to address surging prices at the pump, driven up by Russia's invasion of Ukraine.

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“Today I can announce that for only the second time in 20 years, fuel duty will be cut," the chancellor told MPs in parliament. “Not by one, not even by two, but by 5p per litre."

Despite the chancellor's pledge that the changes to fuel duty would come into force by 6pm that very same day, nearly two weeks on motorists are yet to see the full benefit.

According to the RAC, since the fuel duty cut came into force, the average unleaded price has dropped by 3.65p, decreasing from 167.01p to 163.36p as of 3 April.

Diesel costs dropped by 2.6p from 179.90p to 177.30p in the same period.

The chancellor's 5p off fuel duty changes are set to cost the Treasury around £2.4bn this year - raising questions as to who is actually pocketing the cut if not consumers.

A Treasury spokesperson said: “The public rightly expects petrol retailers and others in the supply chain to pass on this historic fuel duty cut on forecourts – and both the chancellor and the business secretary have written to the industry urging them to do so as soon as possible.

“It’s vital that these savings are delivered to consumers, to help them cope with increased pressures from global increases in the cost of living.”

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Labour have criticised the government on the issue over the extra costs it will pass on to workers.

“This is a savage extra cost for millions of working people," said shadow transport secretary, Louise Haigh. 

“The Conservatives could help working people being hit hard by soaring prices – instead they’ve repeatedly rejected a windfall tax on the soaring profits of oil and gas giants.

“To add insult to injury, this week the Conservatives are going to clobber families with a huge tax hike."

Households are facing the highest inflation in 30 years, the highest tax burden since the 1950s, and record breaking energy price rises - after the average yearly energy bill increased by £693 on 1 April.

Other measures taken by the chancellor to ease the squeeze included increasing the threshold for National Insurance contributions by £3,000, and pledging to cut 1p of income tax - just before the next election in 2024.

However, tax hikes elsewhere - including a 10% rise in National Insurance contributions, a freeze to income tax thresholds, and student loan reforms to bring in more revenue - is saddling Brits with the highest tax burden since Clement Attlee.

The Office for Budget Responsibility (OBR), a government watchdog, in March warned Brits face the biggest drop in living standards since records began as the cost of living continues to bite.

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