Get rid of 5p fuel duty cut, RAC tells chancellor

Published On Aug 29, 2024, 4:15 AM

The upcoming UK Budget may see the scrapping of a 5p cut in fuel duty based on claims that retailers are not passing on lower fuel prices to consumers. Prime Minister Keir Starmer has hinted at the potential for an increase in fuel duty, which could raise significant funds for the Treasury. The RAC argues that the duty cut is unsustainable given the lack of benefits to drivers and increasing retailer profits. Concerns about rising fuel duty affecting inflation and rural drivers have been raised by the AA.

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Stock Forecasts

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Negative

If the government proceeds with increasing fuel duty, it could negatively impact consumer spending and sentiment, especially for lower-income drivers and those in rural areas. This also has potential implications for logistics and transportation stocks.

CVXView CVX chart on TradingView

Negative

Companies involved in fuel retailing could see decreased customer traction and potential backlash against rising prices, which could result in negative sentiment towards their stocks. Increased scrutiny on profitability might also lead to regulatory changes that impact margins.

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