In today’s Spring Budget, the Chancellor has announced that the fuel duty cut will remain in place for the next 12 months.

Jeremy Hunt has been under pressure from backbench Tory MPs to keep the fuel duty cut in place after the freeze was due to come to an end this month. Now the continued halt on fuel duty means drivers have been spared a potential price rise of 12 pence per litre, after the tax had previously been predicted to rise by 23%.

Graham Conway, managing director at Select Car Leasing, has welcomed the continued freeze on fuel duty, saying any large rise could have tipped many motorists over the ‘precipice’.

He said: “We wholly welcome the Chancellor’s announcement on fuel duty in today’s Budget, with the duty now frozen at 57.95p until March 2024.

“The poorest families, as well as businesses operating a fleet of vehicles, would be hit the hardest by any rise in the price of fuel.

“And for many people who are really feeling the effects of the cost of living crisis, such a price hike could have tipped them over the precipice in terms of their own budget.

“Fuel duty is a tax levied on petrol, diesel and other fuels by the Government. And since 2011, fuel duty has actually been frozen at 57.95p per litre.

“In March last year, then-Chancellor Rishi Sunak slashed fuel duty by an additional 5p a litre, taking it down to 52.95p per litre in a bid to ease the pressure on motorists amid sky-high petrol and diesel prices.

“Now, the Chancellor’s decision to extend the cut to fuel duty will come as extremely welcome news to motorists and businesses across the UK that rely on traditionally-fuelled vehicles for their essential travel.

“It’s interesting to note that the continued freeze on fuel duty actually goes against what some experts were forecasting. In November last year, the Office for Budget Responsibility (OBR) predicted a 23% rise in fuel duty, which would have increased the price of petrol and diesel by around 12p per litre.

“The extension to the cut means financial relief for millions of drivers.

“Because while petrol and diesel prices have dropped from the all-time high prices of the summer of 2022, they’re still a huge burden for many families and companies.

“It’s worth noting that while the continued fuel duty freeze can provide some short-term relief for drivers, it may only be a brief reprieve.

“The price of fuel is influenced by a variety of factors, including global oil prices and geopolitical events, which are outside the control of the UK government. Whilst fuel prices have dropped around 45 pence since July 2022, drivers are still paying much more than they were in 2021.”

Filling your tank can be an expensive business – and here are Select Car Leasing’s Top 6 fuel-saving tips for British motorists:

Use Cashback Schemes and Loyalty Cards

From Texaco to Sainsbury’s, various petrol stations and supermarkets offer cashback schemes and loyalty cards to encourage customers to use their services.

Every time you buy fuel at a particular station, you simply have to swipe your loyalty card and points are then awarded.

BP, for example, offers a loyalty scheme where if you earn 200 points, you’ll be able to claim £1 off your fuel or shop purchases. With a Tesco Clubcard, you’ll be able to earn one point for every £2 spent every time you fill up at the supermarket’s petrol station.

As the nation continues to grapple with the accelerated cost of living, these incentives can go a long way.

Be Conscious of How Much You’re Topping Up

Every time you fill up your tank, be sure to only top up what your car requires at the time.

Why would you do that? Fuel adds weight to your car. And the more fuel you’re carrying, the more weight you’re having to lug around, and the more your miles-per-gallon fuel economy figure might decrease. While such a decrease might be relatively small, with fuel prices so high, every little can help.

A top tip to keep up with your top-ups is to keep a consumption notebook in your glove box or keep a record on the notes app on your phone.

For every visit to the petrol station, note down how much fuel you put in your car to get from A-B. In this ever-changing economy, be sure to record your fuel consumption in litres and not in pounds.

Select Your Sat Nav Route Carefully

To avoid excessive fuel consumption, most modern-day sat-navs come with the option to select the fastest route, even taking traffic into consideration.

Avoiding sitting in standstill traffic can contribute to fuel-saving efforts, as your car drives most efficiently when in a higher gear – as opposed to crawling.

Some sat-navs will even allow you to select the most economical route to help you avoid fuel-stealing obstacles, such as large hills and heavy stop-start traffic.

For example, there’s an ‘eco-friendly routing’ feature on Google Maps, which instructs drivers on the most economical route to take.

Fill Up Your Tank at the Supermarket

Surprisingly, supermarket fuel is almost always cheaper than branded fuel.

Whilst supermarket fuel usually comes from the same refineries as the big brands like Shell or Esso, these brands will typically add a range of special additives to their own fuels in order to improve efficiency and performance – which is why they tend to cost more.

Switch the Engine Off When you Can

Leaving the engine running while a car is stationary consumes more fuel. It’s best to switch the engine off in situations where your car is at a standstill, such as in heavy traffic or waiting at traffic lights.

Some newer vehicles are being fitted with stop-start technology which does this automatically.

Switch to an Electric Vehicle

While the initial costs of trading in your petrol or diesel-dependent vehicle for an electric vehicle may be high, the long-term financial benefits are sure to pay off. It’s also why leasing an electric vehicle could be a much more affordable route into EV enjoyment.

An EV vehicle can save you money on fuel and it could also be more cost-effective to maintain. That’s because there are fewer moving parts with an EV than with a traditional petrol or diesel-powered car, which often results in cheaper servicing costs.