Keep fuel duty frozen, RHA urges Chancellor ahead of Autumn Budget
A 5p fuel duty increase would deliver higher prices at the pump and higher distribution costs, pushing up prices for food, drink and energy, according to new research carried out on behalf of the RHA. As a result of a 5p increase, overall consumer prices would jump 0.3% - draining GBP2bn from UK households annually, the research claims. For the average car-owning family, the research calculates this would amount to GBP100 extra annually.
By 2029, this climbs to GBP360. Richard Smith, RHA MD, said: "Diesel costs more here than anywhere else in Europe, and over half of every pound at the pump already goes to Government. "Road freight transport firms keep shops stocked and building sites running, but they've been squeezed in recent years.
"A fuel duty increase would be a hammer blow to a key industry already operating on tight margins. "When businesses face higher fuel costs, the costs don't disappear. They flow through the supply-chain.
This means households pay more for the weekly shop and energy bills. The essentials are hit hardest, and lower-income families feel it most." Smith added: "We're urging the government to keep fuel duty frozen.
At a time when many budgets are stretched thin by cost-of-living pressures, we need to be honest about the real-world impact of fuel duty increases.
"It's not just about motorists.
It's about how we move goods, feed families, and keep the economy running."