Chancellor of the Exchequer Rachel Reeves was expected to hike fuel duty by at least 7p + VAT in the budget on 30th October 2024 to plug a £22bn financial black hole in the Government finances.
This would have added about £70 to the average motorist’s fuel bill.
Fuel duty has been frozen for more than a decade, which is estimated to have cost nearly £130bn.
Fuel duty was cut by 1p in 2011 to 57.95p per litre and frozen since, with a temporary cut by 5p a litre since 2022 – 23. This temporary cut was due to expire in March 2025.
The Chancellor has extended fuel duty freezes in the budget.
Fuel prices are at a three-year low, with the average price of unleaded fuel at 135.26p and diesel at 140.26p a litre as at 28/10/2024 according to RAC Fuel Watch.
The average motorist drives 6,550 miles a year according to ByMiles and the average car does 38.8mpg (or 8.54 miles per litre) according to Nimblefins.
This means the average motorist uses about 767 litres of fuel a year and spends approx. £1,038 on unleaded and £1,076 on diesel.
Although we cannot control fuel duty hikes, we can control how much fuel we use.
With household budgets being squeezed with no end in sight, a few simple tweaks can make a difference.
Here are 5 easy ways to save up to £600 a year on fuel and make your fuel go further.
USE AN APP TO FIND THE CHEAPEST FUEL PRICES
Petrol prices vary widely across the UK and even short distances. You can save up to 23.5p a litre by avoiding motorway service stations and finding cheaper stations nearby.
You don’t have to drive around to find the cheapest fuel.
The website www.petrolprices.com and www.rac.co.uk/drive/advice/fuel-watch have apps you can download to find the cheapest fuel near you.
A small car has a 40-litre tank and a family car holds up to 70 litres, which means you can save between £9.10 and £16.45 each time you fill up.
Saving – approx. £200 a year
KEEP YOUR SPEED DOWN
The AA say reducing your speed by up to 10% in petrol.
If you drive at 70mph, you will use up to 9% more fuel than you would at 60mph and up to 15% more than at 50mph.
Driving at 56mph is the most fuel-efficient speed.
Saving – approx. £170 a year
JUNK THE TRUNK
Have a look in your boot. Every extra 50kg in your car costs an extra 2% in fuel according to the RAC.
Saving – approx. £25 a year
CHECK YOUR TYRES
Properly inflated tyres are not only essential for road safety, but it saves you money.
This is because properly inflated tyres have lower road resistance, meaning your engine requires less effort and fuel.
Tyres generally lose up to two pounds of air per month according to Kwik-Fit.
Underinflated tyres wear out faster, so they will last longer.
A 6psi reduction in recommended air pressure adds 3% in fuel consumption according to TyreSafe.
Saving – approx. £35 a year
REMOVE THE ROOF RACK
If you are not using your roof rack or storage box, remove and store it.
Roof racks and storage boxes can seriously affect a vehicle’s aerodynamics and increase drag, leading to increased fuel consumption.
Removing roof rack crossbars can improve your fuel economy by 12%. That’s an extra 3 miles per gallon or an extra 26.4 miles for a 40-litre car and 46.2 miles for a 70-litre car.
Saving – approx. £95 – £170 a year
£4.50 a tank / £8.30 a tank
Total saving – approx. £525 – £600 a year
These are my 5 easy ways to save up to £600 a year on fuel. Can you add any more tips?
