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Fuel duty may rise 12 pence per litre in March 2023, according to the Office for Budget Responsibility (OBR)’s November report.

A record cash increase, it would add £5.7 billion to the government’s receipts next year, the OBR said. This would be the first time a government has raised fuel duty in cash terms since January 2011.

Fuel duty currently stands at 52.95 pence per litre, and there are concerns that any increase would push prices well beyond the current averages of 164.23 pence per litre for petrol and 188.72 pence per litre of diesel.

RAC spokesman Simon Williams yesterday urged chancellor Jeremy Hunt to leave fuel duty “well alone,” arguing it “would force the millions of hard-working people who depend on their cars to spend even more on petrol and diesel, putting even more stress on already-squeezed household budgets”. 

He added: “Our analysis shows there is a clear link between inflation and fuel prices. When the prices drivers pay to fill up rise, inflation seems certain to follow. That’s something the chancellor must recognise as he considers what action to take today.

“Last month, the Office for National Statistics stated the single main reason inflation wasn’t higher was because fuel prices had fallen through the summer. Unfortunately, going into the autumn, pump prices have been increasing again, which we fear will only put further upward pressure on the headline inflation rate.” 

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