Should You Fill Up Your Car With Petrol or Diesel Before the Budget?

With the UK’s October 30, 2024 budget about to be delivered, drivers face the question of whether to top off their tanks ahead of potential fuel duty increases - and therefore potentially save money on petrol or diesel.

Here’s what we know so far, along with an analysis of possible price impacts and how much you might save by filling up early.

How Much Might Fuel Duty Increase?

Reports indicate that the UK government may raise fuel duty by as much as 7p per litre as part of the October budget announcement. This would be a reversal of the 5p cut that’s been in place since 2022, as well as an adjustment in line with inflation. Fuel duty has remained frozen at 52.95p per litre since 2011, but pressure to address fiscal challenges means a rate change could be likely this time. The increase, if implemented, would affect both petrol and diesel prices, pushing up the cost per litre for UK drivers across the board.

What Would This Mean for Pump Prices?

If the proposed increase goes through, it’s anticipated that pump prices could rise immediately, given that fuel duty is applied directly to every litre of petrol and diesel sold. This could mean a nearly instant impact on your cost at the pump once the budget changes are enacted. Current fuel prices, as of late October, average about 135.26p per litre for petrol and 140.26p for diesel, and an added 7p could mean paying around 142p for petrol and 147p for diesel.

The timing of the price change is generally immediate upon official budget approval. For drivers who fill up weekly or frequently drive long distances, a 7p increase might translate to a noticeable additional monthly expense.

How Much Could You Save by Filling Up Before the Budget?

By filling up ahead of the potential price hike, you could save roughly 7p per litre. For an average 50-litre tank, this means a saving of about £3.50 per full tank. While it may seem modest, these savings could add up over time, especially for drivers who regularly fill up their tanks. If you drive a diesel vehicle and fill up frequently, for instance, a consistent 7p per litre increase over the course of a year could result in additional costs of around £84 or more annually.

If you drive a smaller vehicle and fill up less frequently, the cost impact would be lower, but it’s still a worthwhile consideration as we head into winter—a season where fuel demand and, consequently, prices tend to rise.

What Time Would Changes Be Reflected at the Pump?

If the budget indeed includes a duty increase, changes are likely to reflect at the pump very soon after the announcement. Given that fuel duty is typically adjusted as an excise tax, the timeline from policy announcement to pump prices is often swift. Once wholesalers adjust for the new duty, you’ll likely see updated prices within days at the latest.

While it’s always possible the Chancellor could delay the effective date or gradually phase in the increase, the straightforward nature of fuel duty changes suggests that drivers should expect to feel the impact without much delay if it’s implemented.

Final Considerations

Ultimately, if you’re looking to avoid a potential rise in fuel costs, it could be a smart move to top off your tank before October 30th. While a fuel duty hike isn’t set in stone, the current economic climate and signals from government officials suggest it’s highly likely. Taking this small step could offer peace of mind and some short-term savings in light of the ongoing discussions surrounding fuel duty in the UK.

Sources:

• UK Government: Fuel Duty Regulations and Historical Freeze Details
• This feature looks at potential outcomes and for basic information only

 

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