The Government has cut fuel duty for the next twelve months in a bid to ease the rising cost of fuel.

The reduction, announced by Chancellor Rishi Sunak in the Spring Statement, has lowered the cost of both petrol and diesel by 5p per litre.

The Treasury stated that the cut to fuel duty will cost it around£2.4 billion.

This announcement came shortly after petrol prices hit an all time high of 165.37p per litre, an increase of more than 55% in the last two years.

A one-car family will now potentially save £100 over the next 12 months, according to the Government, while van drivers and hauliers will save between £200 and £1,500.

Nicholas Lyes, head of policy at the RAC, said:

"Temporarily reducing VAT would have been a more progressive way of helping drivers as the tax is applied at the point the fuel is sold, removing any possibility of retailers taking some of the tax cut themselves to increase their profits.

"The Chancellor is currently getting 28p a litre VAT on petrol and 30p on diesel - this of course comes on top of fuel duty as VAT is a tax on a tax."

Talk to us about the Spring Statement.