One of the universally popular announcements in Chancellor Rishi Sunak’s Spring Statement was the decision to cut fuel duty by 5p per litre. Motorists didn’t have to wait around long to see the benefits with the reduction kicking in on Wednesday (March 23) at 6pm.
The Prime Minister’s next door neighbour announced the fuel duty cut in the House of Commons on Wednesday afternoon and took delight in telling MPs it was the first time in years the price has been cut. According to the politician the saving will be in place until March 2023 and save families and businesses over £5 billion.
The Chancellor said: “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. While some have called for the cut to last until August, I have decided it will be in place until 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 effect from 6pm tonight.”
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Some motoring experts weren’t as impressed as Sunak was with his own workings and said that the cut would “take prices back to where they were just over a week ago”. RAC head of policy Nicholas Lyes said: “The reality is that a 5p cut in duty is something of a drop in the ocean. In reality, reducing it by 5p will only take prices back to where they were just over a week ago.
“With the cut taking effect at 6pm tonight drivers will only notice the difference at the pumps once retailers have bought new fuel in at the lower rate. There’s also a very real risk retailers could just absorb some or all of the duty cut themselves by not lowering their prices.”
Supermarkets were quick out of the blocks though, with Morrisons confirming its petrol would be reduced by 5p from 6pm on Wednesday (March 23). Sainsbury’s also confirmed it was passing on the price reduction to customers, cutting the price of a litre by 6p which includes a 1p reduction in VAT.
While Asda confirmed the reduction meant the national average at its pumps was reduced to under 160p per litre for petrol and down to 170p per litre for diesel. And Tesco confirmed it reduced the price of fuel at its petrol filling stations by 6p on Wednesday too.
Using website Petrol Prices MyLondon checked the prices for a litre of fuel in the capital the day after the Chancellor’s announcement. We looked at the prices for a litre of fuel at Sainsbury’s, Morrisons, Asda, and Tesco filling stations in different parts of London to see how much the price really had fallen for motorists.
In East London at Beckton Sainsbury’s the price for a litre of petrol on March 24 was 155.9p. According to Petrol Prices in South London at the Merton Sainsbury’s petrol was 156.9p.
At the Ladbroke Sainsbury’s in West London a litre of fuel was 159.9p. Enfield Sainsbury’s in North London was selling a litre of petrol for 157.9p.
On March 24 the Wallington Asda store in Sutton, South London was selling petrol at 158.7p per litre. The Isle of Dogs Asda in East London priced petrol at 158.7p per litre. In North London at Tottenham Asda a litre of fuel cost 158.7p. At Wembley Asda a litre of fuel was available at 158.7p and diesel at 176.7p.
On March 24 Peckham Morrisons in South London was selling a litre of petrol for 162.7p. In North London, Enfield Morrisons was charging 157.9p for a litre of petrol. In North-West London, Queensbury Morrisons priced a litre of fuel at 159.7p.
On March 24 a litre of petrol in West London at Hayes Tesco cost motorists 155.9p. In East London at Barking Tesco the cost for a litre of petrol was 156.9p. In South London at the Purley Tesco motorists could get a litre of fuel for 158.9p. At Lea Valley Tesco in North London the cost for a litre was at 159.9p.