Motorists and businesses need to take steps now to reduce the impact of what could be a staggering 23% rise in fuel duty in the spring, a leading UK fuel technology company said today.
Last month the Office for Budget Responsibility (OBR) said the hike could come in late March 2023, increasing the price of petrol and diesel by around 12p per litre. The details were buried in the OBR document released alongside the Chancellor’s Autumn Statement.
The current 5p per litre fuel duty cut made earlier this year is due to expire next March, but no decision on future fuel duty will be made until the next Budget, in the spring.
Nawaz Haq, Executive Director at SulNOx Group Plc, which specialises in fuel technology that reduces emissions and improves fuel efficiency, said: “We had our reservations when fuel duty was cut in the first place. There is plenty of evidence that cutting fuel tax helps the richest 10% of the population most, rather than the people who need the most help, and it flies in the face of the Government’s own net zero ambitions.
“Now we learn that, instead of helping businesses and motorists, the rebate could just be storing up a massive price hike further down the line.”
David Wells, chief executive of Logistics UK, said a 23% rise in fuel duty would “have a detrimental effect on the UK’s economy”.
“Businesses, and indeed individuals, in this country can’t operate with this degree of uncertainty and this level of stress,” said Mr Haq. “A rise of this level could put many companies that are already on their knees out of business, and they need to be making plans now. They can’t wait until the spring to find out whether they’re going to be hit with another massive bill.”
London-based SulNOx Group specialises in providing responsible solutions towards decarbonisation of liquid hydrocarbon fuels. Through extensive real-world road tests, its all-natural SulNOxEco™ fuel conditioners have been proven to reduce fuel consumption around 10% representing significant reductions in greenhouse gases.
“There are steps companies and individuals can take to mitigate a rise in fuel duty, such as using our fuel conditioners to increase the range of their vehicles. The real issue here, however, is that we need certainty from those at the top so that we don’t see yet more misery as we move into the spring.”