Fleets Face 23% Hike In Fuel Duty From March 2023

Fleets Face 23% Hike In Fuel Duty

Having faced unprecedented rises in fuel costs during the last ten months, fleets have been warned they government may be plotting to increase fuel duty by 23% at the spring budget. According to the Office of Budget Responsibility (OBR) fuel duty has remained static at 57.95ppl since 2011 until the then Chancellor, Rishi Sunak reduced it by 5ppl in March 2022. The 23% increase would represent an increase of 12ppl which would generate an additional 5.7 billion in taxes.

David Wells, chief executive of Logistics UK, said “The fact that the detail of this policy was hidden in the body of the OBR Report and not announced by the Chancellor in the House indicates that the Government was hoping to avoid scrutiny on the topic.

“We are seeking urgent clarification as to whether the duty rise will be implemented as planned, as a rise of this magnitude would have a detrimental effect on the UK’s economy.”

Given the apparent state of the public finances, it would be an unsurprising if not unwanted move by the government that will not doubt continue to put pressure on an already challenged industry. 

The Treasury has said a final decision would not be taken until the next budget in spring 2023.

Martin Fryer

Martin Fryer is Managing Director of a specialist haulage company as well as a qualified transport manager with experience across multiple different industries. He holds a BA (Hons) in Logistics and is a chartered member of the Institute of Logistics and Transport.

See author's posts