By james art Petrol and diesel drivers are facing a hike due to a potential new rule change coming from the Labor government.
Chancellor Rachel Reeves could make fuel duty changes in the Budget on October 30.
Experts slammed reports the Chancellor could be planning to raise the level of duty on fuel by 7p.
🚨SMF welcomes the possible increase in fuel duties #Budget2024
⛽️As we’ve highlighted, the government has lost £130 billion to date, with the loss rising to £200 billion by 2028 – while saving the typical household just £13 a month in car costs.
👇Hear more from the Head of Transport Policy @gideonsalutin pic.twitter.com/J6gQGcrLrk
— Social Market Foundation (@SMFthinktank) October 18, 2024
According to a Whitehall source, officials told the chancellor Mrs Reeves it was “now or never” for fuel, the Mail reported.
Other publications such as The Daily Express and the Guardian also reported on the rise in fuel duties.
The Chancellor was warned that “if she doesn’t act to end the freeze now, it will be much harder for her to do so later in Parliament”.
Paul Barker, editor of Auto Express, said the “reported 7p rise in fuel duty” would be a “serious blow” to motorists who continue to struggle with the cost of living crisis.
Barker added: “With the average car needing to be refueled every eight days, this rise will increase the cost of each fill-up by nearly £4 – around £175 a year in extra fuel costs – making it harder for drivers to cope with their regular expenses, especially those who rely on their cars for work or daily travel.
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“What is particularly disappointing is that this increase comes just as global fuel prices have started to decline, raising suspicions that the government is trying to take advantage of a short period of lower costs to impose a significant increase in the taxes.
“Drivers who have already endured high fuel prices over the past few years would be unfairly burdened at a time when household budgets remain stretched.”
A spokesman for HM Treasury said: “Following the spending audit, the chancellor was adamant that tough decisions are ahead on spending, welfare and tax to fix the foundations of our economy and tackle the £22 billion hole in public spending finances left by the last government.
“Decisions on how to do this will be made in the circle budget.”