The Chancellor has announced a 5p per liter fuel tax cut as motorists grapple with record-breaking fuel prices.
Rishi Sunak said the move, which begins at 6pm on Wednesday and will last until next March, is “the biggest cut of any fuel tax rate ever”.
Car group RAC said the cut would cut the cost of filling a typical 55-litre family car by £3.30.
Supermarket chain Asda said it would cut its pump prices by 6p a liter, including a 1p cut in VAT.
The average price of a liter of petrol has risen by more than 40p a liter since last year’s spring declaration, meaning the government gets an additional 7p a liter of VAT, which is the other tax the government levies on fuel.
Diesel prices have risen by almost 50p a liter, of which almost 9p is VAT.
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