Chancellor Rachel Reeves Stands Firm on 5p Fuel Duty Hike Despite Mounting Pressure
Labour Party Chancellor Rachel Reeves has broken her silence and is refusing to ditch the planned 5p fuel duty hike, even as oil prices soar due to the ongoing Iran War. She stood firm on ending the fuel discount, which will be gradually phased out from September, despite calls from opposition parties to scrap the increase.
Reeves Defends Measures to Keep Pump Prices Low
In a statement, Reeves said, “I am also taking action to ensure that people pay the lowest possible price at the pump. In November, I extended the 5p-per-litre cut in fuel duty for a further five months and ensured that Fuel Duty will not increase with inflation this year.” She added that petrol is more than 8p-per-litre cheaper today than it would have been under previous plans, increasing to 11p per litre next month once the extension takes effect.
Reeves emphasized her commitment to transparency, stating, “This week, I am meeting with petrol forecourt operators and I will not hesitate to call out providers who fail to provide data to the Fuel Finder.” She believes that rapid de-escalation is the best way to keep prices low and will continue monitoring the situation as it develops.
Crackdown on Price Exploitation
The Chancellor has also asked the Competition and Markets Authority (CMA) to be vigilant across prices, including essentials like road fuel and heating oil. She made it clear, “Let me absolutely be clear: I will not tolerate any company exploiting the current crisis to make excess profits at consumer’s expense.”
A Treasury source reinforced this stance, saying, “The Chancellor wants drivers paying the lowest possible price at the pump – if that means calling out petrol forecourts who don’t sign up to Fuel Finder then she’ll do it. She’s fed up of petrol prices being like the wild west and she wants to put an end to it.”
Opposition Criticism and Calls for Reversal
Conservative Party Shadow Chancellor Sir Mel Stride criticized Reeves' position, telling The Sun, “The latest developments in the Middle East make it even more important for Rachel Reeves to reverse course and scrap the rise in fuel duty she announced at the Budget.” He argued that Labour is prioritizing benefits over motorists and commuters, unlike the previous Conservative government which froze fuel duty annually.
Stride added, “Labour did not make the same choices and chose ever higher spending instead. They must scrap the rise before it’s too late.” This highlights the political divide over the issue, with Reeves maintaining her stance despite the pressure and rising global oil prices.
