The Chancellor Rishi Sunak has announced a 5p per litre cut in fuel duty from 6pm this evening.
Mr Sunak confirmed the fuel duty cut, only the second time in 20 years fuel duty has decreased, will be in place for a full 12 months.
Fuel duty makes up a large part of the price you pay when buying petrol and diesel at the pump and has been frozen at its current level since 2001.
What makes up the price of petrol per litre?
The price of petrol per litre is made up of five charges:
Fuel duty – 35%
Cost of petrol to supplier – 33%
VAT – 17%
Cost of biofuel content – 7%
Making the announcement today Mr Sunak said: “Today I can announce for only the second time in 20 years fuel duty will will be cut. Not by one, not by even by two, but by five pence per litre. The biggest cut to all fuel duty rates ever.
“The cut will be in place till March next year, a full 12 months. Together with the freeze, it’s a tax cut this year for hard working families and businesses worth over £5 billion and it will take affect from 6pm tonight.”
The cut in duty will make it around £3.30 cheaper to fill up a typical family car with a 55-litre tank
