Drivers face having to pay £175 to keep car on road from this week

Drivers and motorists have been warned over fuel duty - with petrol and diesel road users facing a worrying £175 annual hike in their costs at the pump under the new Labour Party government. Chancellor Rachel Reeves will deliver her Autumn Statement this week.

Gordon Wallis, a motoring expert from the independent fuel supply and distribution company Your NRG, explained: "While there’s speculation around a potential rise in fuel duty, it’s important to understand the broader context. This has left some drivers feeling they’ve missed out on the intended savings from the 5p cut.

"The potential changes in fuel duty come at a time when the cost of living remains a key concern for many. Transparency in pricing and supporting initiatives like a real-time fuel finder could help consumers make more informed choices about where to purchase fuel at the best rates."

READ MORE Met Office says snow could hit UK within days and explains where's set for flurries

He advised: "Any decision to alter fuel duty will have varied effects across the UK. While some may view an increase as a step backwards, it could provide an opportunity to address longstanding issues in how fuel prices are set.

"The debate over fuel duty extends beyond just the figures at the pump; it's about creating a fairer market for all. While it’s natural for motorists to be concerned about potential increases, it’s also important to consider how this revenue might support public services or infrastructure in the long run."

A 7p hike would add £175 onto the annual petrol and diesel cost for an average family. The tax is levied at 52.95p a litre (VAT is extra) and is worth about £25bn a year to the exchequer. But since 2011 it has not gone up, and in 2022 the last government reduced it by 5p.

Katie Thorogood is one of the owners of Love Life Care, which supplies domiciliary carers to people in the Ely area. "For a small care company like ours, the cost of fuel already has an impact. If fuel duty does go up, we'll have to increase our fees that will impact on our clients," she says.

"We've noticed in the past [when fuel prices went up] that they tend to reduce their care packages, which is leaving them in a vulnerable position. This could put people off from wanting to work in the care industry, [which] is already struggling when it comes to recruitment. We might also have to cut down on the areas which we cover.

"So this is potentially putting us at risk of losing staff and reducing our capacity for care."