Fuel duty has been frozen since 2011 and will not rise until at least the end of this parliament in May. The next planned increase is in September. From April 2016 onwards, it is due to rise in line with RPI (retail prices index).
Fuel duty is currently 57.95p per litre for both petrol and diesel, and Government figures show this tax brought in just under £27bn in the 2013/14 tax year.
As of March 2, RAC Foundation figures show the average price of diesel was 116.65p per litre. Of this, the cost of oil, fuel production and supply, and profit margin was 39.26p, fuel duty 57.95p, and VAT 19.44p.
This means fuel duty makes up 50% of the pump price, with VAT 17%. Tax makes up 67% of the cost of fuel.
What is your position on fuel duty?
Conservatives: We’re proud to be freezing fuel duty. Fuel duty is 20p per litre lower than it would have been without our action, meaning that the average family saves £11 every time they fill up their tank.
Labour: Declined to comment.
Liberal Democrats: We want to keep fuel prices fair to help businesses. We scrapped Labour’s fuel duty escalator which increased tax on fuel by inflation plus 1p per litre every year. We introduced a Fair Fuel Stabiliser, making sure that when petrol prices are high, duty never increases above inflation. Chief Secretary to the Treasury Danny Alexander recently wrote to fuel suppliers to remind them that the public expects lower wholesale costs to be reflected in costs faced by motorists. Those selling fuel should play their part too.
FleetNews view: No response from Labour; does this suggest a return to regular tax increases on fuel? Lib Dems appear most committed to a fairer fuel tax system.