Ditching the fuel duty cut would not have the biggest impact on petrol and diesel drivers since costs are already falling, one expert has said, as debates rage about Labour's Budget plans.
The Conservatives cut the rate of fuel duty two and a half years ago following the Russian invasion of Ukraine and the subsequent jump in petrol and diesel prices at forecourts.
It has since been frozen in two consecutive Budgets as the Government looks to help petrol and diesel drivers during the cost of living crisis when prices jumped to record levels.
There have since been reports of Labour's Rachel Reeves scrapping the 5p per litre fuel duty cut amid concerns of a black hole in public finances left by the previous Conservative Government.
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Quentin Willson has commented on the speculation around fuel duty changes
PA
Quentin Willson, founder of FairCharge, said he "never thought" he would support a rise in fuel duty, having campaigned for FairFuel for 11 years to keep it low.
However, he noted how the 5p fuel duty cut designed to help motorists save on petrol and diesel prices at a time when they were nearing record levels was being wasted by major retailers.
The RAC recently highlighted how fuel prices should be 6p cheaper because retailers and supermarkets were not selling fuel at standard levels compared to wholesale prices.
Because of this, retailers are profiteering from the sale of fuel by around 15p per litre for diesel and 13p for unleaded. Willson stated that it was 8p before the pandemic.
Willson continued, saying: "Sunak’s 5p cut has cost the Treasury £2billion and if Labour is cutting Winter Fuel Allowance for pensioners, let’s use that £2billion to help support them, rather than fill the pockets of fuel retailers.
"The road fuel industry does themselves no favours claiming all sorts of reasons why they need higher margins, but society now has other priorities, so let’s redeploy those billions to more deserving causes."
The current price of Brent crude oil is around $80 (£60.89) per barrel, with Willson pointing out that European demand is predicted to drop below pre-pandemic levels.
This will force wholesale prices even lower, forcing retailers to slash fuel costs below the current levels of 141.75p for petrol and 146.55p for diesel.
The expert said any changes to fuel duty, namely raising the rate to its original level of 57.95p, would "not hit drivers excessively hard".
Government intervention could also be a suitable measure given the Competition and Markets Authority report finding that drivers were overcharged £1.6billion as a result of retail fuel margins in 2023.
Willson concluded: "I support fair and transparent fuel prices for UK drivers, but if we’re handing over taxpayers’ cash to an industry that isn’t passing savings to consumers, then it’s time we paused for thought and spent that money on those who really need it.
"Raise fuel duty and reinstate the Winter Fuel Allowance for pensioners.
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Rachel Reeves will deliver the Budget on October 30 GETTY"Drivers have had over a decade of static fuel duty rates, along with the 5p cut, so a duty hike now shouldn’t surprise, nor spook, us."
Chancellor Rachel Reeves will deliver Labour's first Budget on October 30, with many now expecting the Government to decide on the fuel duty freeze, which will expire in March next year.