AA Shares How Much Petrol Prices Have Really Fallen Following 5p Fuel Cut

Motoring company the AA has revealed how much petrol prices have actually fallen following Rishi Sunak's announcement of a 5p cut in fuel duty.

The chancellor announced the cut on Wednesday, 23 March, as drivers in the UK face soaring petrol prices following Russia's invasion of Ukraine.

Sunak said the 5p fuel cut, worth 6p once VAT is added, would come into force from 6.0pm on Wednesday and last until March 2023, but data from the AA indicates the cut did not immediately translate to the fuel pump.

Pixabay

The company found on Thursday that petrol prices had fallen just 2.71p following Sunak's announcement, with the average price across the UK at 64.59p a litre for the fuel. Meanwhile, diesel was down 1.59p and cost an average of 178.72p a litre.

The prices did mark a slight decrease from Tuesday, when petrol and diesel pump prices hit new records of 167.30p and 179.72p a litre, respectively, but the AA's fuel price spokesperson Luke Bosdet noted that Sunak's announcement did not have the immediate effect many desired.

He commented: "The chancellor rode to the rescue of drivers on Wednesday and, even before the 6pm start of the fuel duty cut, drivers were reporting the price cut at some Asda forecourts. However, on Thursday, the average price of petrol showed that less than half (2.71p) of the fuel duty cut had been passed on to drivers."

After the chancellor spoke to MPs on Wednesday, Transport Secretary Grant Shapps said he would be doing his part to help ensure the cut comes into place.

"The price of petrol at £1.60, £1.70, is really hitting people hard," he told Good Morning Britain.

"I will be speaking to the petrol retailers and asking them to make sure that they pass it (the 5p cut in fuel duty) on.

"Viewers know, you see big differentials, particularly between the supermarkets and petrol stations, please help us put pressure on them by shopping around as well, and not paying those higher prices, particularly where they fail to pass on this 5p cut. We will be watching very, very carefully and viewers can help," he continued.

The 5p fuel duty cut marked the biggest reduction to fuel duty rates 'ever', with Sunak telling MPs: "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."

Bosdet said drivers may have to wait for the next delivery of fuel for the duty cut to come through to many forecourts, but admitting the size of the fall so far is very disappointing.