The Chancellor of the Exchequer, Rachel Reeves, announced in the Autumn Budget 2024 that fuel duty will remain frozen at 52.95 pence per litre until at least spring 2025. The decision has been met with relief from across the haulage and logistics industries, where the costs associated with rising fuel prices have intensified operational pressures.
The RAC noted that the freeze provides much-needed stability for motorists, especially given widespread speculation that the fuel duty cut might be scrapped. Simon Williams, Head of Policy at the RAC, stated, “Drivers will breathe an enormous sigh of relief after all the speculation that the 5p cut would be scrapped at the same time as pushing duty up beyond the long-term rate of 57.95p.” Williams added that fuel taxes currently make up a significant portion of fuel costs, with “56% of the total price of a litre of petrol” attributed to fuel duty and VAT combined.
The Road Haulage Association (RHA) also welcomed the announcement, describing it as a necessary measure to support the haulage and coach industries during challenging economic times. RHA Managing Director Richard Smith noted that these businesses are “essential to economic growth.”
“With operating costs increasing, margins tightening, and the direct link between higher movement costs and inflation, the last thing these vital businesses needed was a rise in fuel duty,” he added.
Smith further pointed out that diesel prices in the UK remain higher than in any EU member state, adding that further support could help ease pressures on hauliers’ budgets and, in turn, benefit consumers by potentially lowering inflationary pressures.
Logistics UK echoed these sentiments, highlighting the fuel duty freeze as critical to the sector’s viability. Chief Executive David Wells OBE remarked,
“Nothing moves without logistics: the sector supplies our hospitals, schools, factories, shops, and homes with everything they need, everywhere, every day.” Wells emphasised that the sector operates on tight margins, with fuel costs making up a substantial share of expenses, and asserted that today’s announcement “should drive confidence in our sector’s ability to deliver for its customers with confidence.”