Fuels: Excise Duties

(asked on 7th May 2019) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the environmental impact of freezing fuel duty since 2010.


Answered by
Robert Jenrick Portrait
Robert Jenrick
This question was answered on 13th May 2019

The consumption of fuel is highly price inelastic. Therefore, fuel duty freezes only have a marginal impact on the amount of fuel purchased, and therefore limited impact on emissions.

Households spend a significant amount of their total spending on transport fuels, and fuel costs are a major factor in helping the competitiveness of British businesses. Duty on fuel remains at 57.95ppl. The government is also taking action to reduce emissions and improve air quality through Vehicle Excise Duty and the Company Car Tax system.

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