Fuel duty cut by 5p as cost of petrol soars to average 167.3p per litre

Chancellor Rishi Sunak has announced a 5p per litre reduction in fuel duty from 6pm tonight (23 March).

The cut comes as part of the Chancellor’s Spring Statement amid a cost of living squeeze due to soaring prices.

Oil prices have surged following Russia’s invasion in Ukraine which has pushed up wholesale prices.

Petrol averaged at 167.3p a litre last week, with Diesel averaging 179.7p per litre. This means the average cost to fill a petrol car is now over £92.

To fill a diesel car would cost almost £100.

The price of petrol at the forecourt has increased by almost 40p per litre in the last year. Diesel is up 50p per litre.

Fuel duty is levied at a rate of 57.95p per litre. It has been frozen since March 2011.

VAT at a rate of 20 per cent is charged on top of this.

The 5p duty cut would save the average motorist £3 according to motoring organisation the RAC.