5p/litre off fuel should result in 6p/litre reduction at the pump

My mathematical brain sees that, as a result of the 5p/litre reduction in fuel duty (which would have had 20% VAT payable on it). Because the VAT on fuel is calculated on the cost of it including the fuel duty, It should actually cause a reduction of 6p/litre at the pumps. including the 1p VAT no longer deducted.

However, I am not a betting man!



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