There must be 38 million UK motorist's pleased with the Chancellors decision to freeze fuel duty for the sixth year in a row. This brings with it a saving of £75.00 a year for the average driver, while small business owners with a light commercial vehicle can expect to save around £270.00. This may have come as a surprise for many as fuel duty was odds on to rise amidst last years duty escalator plans.
This means fuel duty remains at 57.95 pence per litre for 2016 and 2017. It accounts for half of the price of petrol or diesel now that oil prices have fallen from around £1.40 per litres a few years back to around £1 per litre today.
The Chancellor commented that families and businesses were hit when oil prices increased, therefore they shouldn't be penalised when the price of oil drops.
The Chancellor need not worry about losing out though, as tax on petrol and diesel accounts to 75 percent of the pump price which will generate around £27 billion in fuel duty alone next year.
While this comes as good news, motorists may have noticed a 0.5 percent increase in Insurance Premium Tax last year. This will see car policies and breakdown assistance premiums increase on the back of this 3.5 percent tax hike.