What is fuel duty and why is Theresa May set to freeze it? Here's everything you need to know

What is fuel duty and why is Theresa May set to freeze it? Here's everything you need to know
What is fuel duty and why is Theresa May set to freeze it? Here's everything you need to know
0
Have your say

Theresa May is due to announce a freeze on fuel duty for the ninth year in a row during her speech at the Conservative Party conference.

Bernard Ingham: The conference speech Theresa May should deliver if she wants to save her country, her party and her premiership.
Chancellor Philip Hammond has said the duty freeze comes at a "significant cost to the Exchequer" but that the Government was easing the burden on families.

Here are answers to questions on fuel duty:

What is fuel duty and how much is it?

Fuel duty - as the name suggests - is a tax placed on most fuels, and has stood at 57.95p per litre since the March 2011 budget.

Is that the only tax on fuel?

Value Added Tax - currently at 20% - is then added to the total price at forecourts.

The Yorkshire Post says: Can Theresa May rise to challenge? Boris Johnson and Sajid Javid on the move
How much does fuel duty bring in for the Treasury?

The Office for Budget Responsibility said it will bring in £28.2 billion in 2018-19, equivalent to £1,000 per household and 3.6% of all income.

How much of the cost of fuel is tax and how has it changed?

According to the RAC Foundation, 59.6% of the pump price of diesel and 61.2% of unleaded is made up of tax. The charity's data, which runs from 2004, shows this peaked at 77% for unleaded and 75.6% for diesel in that year, and reached a low of 52.9% for diesel and 57.1% for unleaded in 2008.