Fuel duty announcements welcome relief for drivers and businesses in Devon and Cornwall
The Government has announced today that the 5p reduction on fuel duty – implemented in 2022 – will be extended to the end of the year, and that the fuel duty rate on red diesel will be cut from 10.18p to 6.48p per litre from 15 June until the end of 2026.
Commenting on the news Abby Turner, Director of Moorland Fuels, said: “For months we have been calling on the Government to take account of the real-world pressures being placed on households and businesses affected by the war with Iran.
“Today’s announcement recognises this and will come as a huge relief for rural households, farmers, tradespeople and businesses in Devon and Cornwall who have little choice but to use their car or vehicles to get to work or conduct their business.
“For farmers, the rail freight sector and other users of red diesel, the duty cut is a lifeline. Wholesale prices have spiralled in recent months, increasing in some cases by up to 50% compared to the pre-crisis levels. Cutting the duty on red diesel, rebated biofuels – and all fuels that currently attract the gas oil rate – by over a third through to the end of the year recognises the significant challenges these businesses have been facing, many of which have been operating on thin margins.
“But while this is good news, it still remains important to ask what happens in 2027? Customers need to have certainty so that they can plan ahead, building confidence in the economy.”
“More encouraging”, says Turner, “is the 12-month HGV vehicle excise duty moratorium. This means hauliers will pay £1 at renewal, saving £600 for a typical heavy lorry and £912 for the biggest vehicles on the road. Making a meaningful difference to the bottom line, this will help reduce the cost of operating and should help to keep a cap on the rising cost of goods and services for customers and consumers.”
