Spring Statement: What is fuel duty? Here's how much you can save on petrol with Rishi Sunak 5p cut in fuel duty

The Chancellor Rishi Sunak presented his spring statement on Wednesday, with news that fuel duty will be cut across the UK.

The cost of living has increased steadily, with fuel prices being hit heavy, and this cut is hoped to help ease the burden of rising costs at the petrol pump.

Here's how the cut in fuel duty will impact you in Northern Ireland.

What is fuel duty?

Fuel duty is an additional tax that you pay on top of the cost of your fuel when you fill up your tank at the petrol pump.

How much is fuel duty in the UK?

Currently, fuel duty in the UK is priced at 57.95p per litre with 20% VAT added on top.

The cost of fuel duty has been frozen since March 2011.

Fuel prices have risen sharply across Northern Ireland, according to the NI Consumer Council, the average cost for diesel is 172.2p, up from 164.1p on March 10.

Whereas the average cost of petrol is now 163.3p, up from 155.8p on March 10.

Fuel duty cut in the Spring Statement

The Chancellor, Rishi Sunak discussed the rising cost of fuel in the Spring Statement, and announced he would introducing a 5p fuel duty cut to help with the cost of living crisis, which would come into force after 6:00PM on Wednesday, March 23.

Speaking to MPs he said,

“Today I can announce that for only the second time in 20 years, fuel duty will be cut. Not by one, not even by two, but by 5p per litre. The biggest cut to all fuel duty rates – ever.“

How much could you save with a fuel duty cut?

According to the RAC, the 5p cut on fuel duty could make it £3.30 cheaper to fill up a car with a 55-litre tank.

More from the News Letter:

DUP leader Sir Jeffrey Donaldson urges chancellor Rishi Sunak to cut VAT and duty on fuel