The PM said that a choice would be made public on March 15 in the Chancellor’s Budget.
The possibility of cars paying an increased fuel tax of 12p per litre in March has not been completely ruled out by Prime Minister Rishi Sunak.
According to Treasury planning, the charge is expected to grow by 23% in March 2023, but chancellors have consistently frozen the fee.
The Prime Minister informed lawmakers on Tuesday that he would refrain from commenting on things that were within the scope of Chancellor Jeremy Hunt after being questioned by MP Harriett Baldwin, chairwoman of the Treasury Select Committee, to clarify that the raise would not proceed.
He told the Liaison Committee, “Having previously held his position, I always liked it when the Prime Minister made absolutely no statements regarding future tax policy, therefore I will completely stick to that.”
“Tax decisions are those that are made by the Chancellor in fiscal statements and that’s the way it should be.”
On March 15, Mr. Hunt will present his budget. Ms. Baldwin pressed Mr. Sunak on whether he was “going to let the Chancellor get away with it” and he once again refused to rule it out.
He said, “I am going to let the Chancellor make his policy on fiscal decisions and announce them in the normal way”.
“Tax decisions are those that are made by the Chancellor in fiscal statements and that’s how it should be.”
Fuel duty, which is assessed on diesel and petrol at a rate of 52.95p per litre, is the largest tax, followed by VAT, which is 20%. Since 2011, the top pricing for regular petrol and diesel has been fixed.
The tax generates £26.2 billion for the government, or around £930 per family and 1% of the gross domestic product.
Drivers must pay fuel duty in addition to the cost of petrol, diesel, and other heating fuels.
According to the most recent statistics from Petrol Prices, fuel is now at its lowest price since March, although it still costs 10p per litre more than it did at this time last year.
On December 13, the average price of unleaded in the UK was 155.4 pence per litre.
Diesel is now at its lowest price since May 2022, although it still costs 30p more per litre than it did at this time last year. On December 13, the average cost of fuel was 179.3.
Between December 1 and December 13, the average price of unleaded in London increased to 157.8 pence per litre from 146.6 pence at the same time previous year, an 11.2 pence increase.