Labour's Fuel Duty Hike: A Heavy Burden for Drivers

0:00On March 15th, labor's government plans to raise fuel duty by 5 pence per liter starting in September, in stages over the next few years. This comes as petrol prices hit an 18-month high, driven by conflict in Iran that's disrupted the state of Hormuz, a key route for 20 percent of global oil and gas. Conservative analysis warns the change will add about 78 pounds a year for the average petrol car driver, covering 7,000-4, 100 miles annually, or 156 pounds for a family with two cars. The current five pence cut ends at the close of August. Opposition leaders slam the move as unfair amidst soaring costs, while the Prime Minister says he'll review the situation but won't commit to extending, relief. Treasury officials dispute the figures and say the chancellor is pushing retailers for fair-pump prices. Retailers like Azda have hiked petrol by over 10 pence per liter since the conflict started, the fastest among majors, with diesel up nearly 20.

1:00Pence, shale tops average prices at around 144 pence, while Morrison's offers the lowest. Drivers can say by checking real-time price maps from stations like Tesco and BP, potentially cutting 10 pounds per fill-up. With fiscal rules tight, experts say more handouts risk higher borrowing costs as the government weighs recession fears.