Reduce VAT on road fuel during the ongoing oil price uncertainty

Background

Temporarily cut VAT on road fuel from 20% to 5%, matching domestic energy. Apply this reduced rate for the period of global oil price instability or until markets stabilise. Recognise road fuel as essential for workers, families, logistics and the wider economy.

Additional details

We call on the UK Government to temporarily cut VAT on road fuel from 20% to 5% while global oil prices remain unstable. Drivers pay VAT on top of fuel duty (52.95p per litre), so any rise in wholesale prices is amplified, unlike domestic heating fuel which has a 5% VAT rate. A temporary VAT cut would ease pressure on motorists and businesses, reduce the tax on tax effect, support essential travel and supply chains, and bring road fuel into line with domestic energy.

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