Starmer extends fuel duty freeze for the rest of the year - but faces fury over Russian oil deal
Sir Keir Starmer has postponed a planned 5p increase in fuel duty, extending the freeze until the end of year, but he is facing pressure after he allowed imports of “dirty Russian oil.”
An increase in fuel duty planned for September has been scrapped, Prime Minister Sir Keir Starmer announced today.
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Fuel duty was initially cut by 5p in the Spring Statement in March 2022, under the Conservative government. It was supposed to last 12 months, but has been repeatedly extended.
Sir Keir told the Commons he is extending the freeze because of events in the Middle East.
“This ensures fuel duty on petrol and diesel remains at its lowest rate for over 16 years,” the Treasury said.
However the fuel duty freeze comes as the PM faces pressure over the loosening of sanctions on Russia. Overnight, the government loosened its restrictions on Russian oil, allowing imports of jet fuel and diesel that had been refined in third countries.
Read more: Starmer eases sanctions on Russian fuel as PM slammed over decision amid Hormuz oil crisis
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A new trade licence, which came into effect today, permits the imports “indefinitely”.
Ukraine, the Tories and the Lib Dems have all condemned the decision and there will be an urgent question on Russian oil later.
Tory leader Kemi Badenoch asked the PM to explain why "oil from Russia is acceptable, but oil from Aberdeen is not”.
She accused Labour of giving money to Russia while Reform takes money from Moscow.
"There's only one party that's standing up to Russia and that is the Conservative Party," she told the Commons.
Hauliers will also get a 12-month road tax ‘holiday’.
Farmers, rail freight, and other red diesel users will also see their fuel duty cut by over a third until the end of the year.
Sir Keir said: “This government is stepping in to keep fuel costs down for millions of drivers and putting money back in the pockets of working people.”
Earlier this morning on LBC , Dan Tomlinson, Exchequer Secretary to the Treasury and MP for Chipping Barnet, ruled out the idea of a price cap on certain supermarket goods.
It follows reports that the Treasury had asked major supermarkets to limit prices on the likes of eggs, bread and milk in return for the lifting of some regulations amid an ongoing cost of living crisis.
However Mr Tomlinson told LBC "this isn't something we're considering."