The measure

The Government has cancelled the fuel duty increase, expected to be worth 1.61 pence per litre, that was to take effect on 1 September 2014.

The Government has also announced that the fuel duty differential between the main rate of fuel duty and the rate for certain road fuel gases will stay at the current levels until March 2024. The differential between the main rate and the liquefied petroleum gas rate will continue to reduce by 1 pence per litre each year to 2024. The Government will review these measures at Budget 2018.

The Government also announced its intention to seek EU approval to apply a reduced rate of fuel duty to methanol and to extend the current rural fuel rebate scheme to remote areas on the UK mainland.

Who will be affected?

Individuals and businesses which use fuel.


The Government has previously announced cancellations and postponements to fuel duty, and this announcement means that there will not be an increase in 2014.

The measures regarding the differentials impact over the next ten years to 2024.

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