Increase in fuel tax in budget?

Supatramp

If the chancellor increases the tax on fuel in the budget, does it go up immediately?

molerat

In the olden days budget duty changes always used to be from 6 o'clock same day.

Mildly_Miffed

The chancellor will announce when it comes in.

2011 was the last proper change, a 1p cut, effective 6pm on the day of the budget.

2022 saw a 5p cut, initially temporary for 12 months (but extended for another 12 months in March 2023 and this March) due to the oil price rises thanks to Putin's invasion of Ukraine - again, 6pm on the day of the budget.

oldernonethewiser

molerat said:

In the olden days budget duty changes always used to be from 6 o'clock same day.

Memories of the queues outside petrol stations late afternoon on budget day.

strawb_shortcake

oldernonethewiser said:

molerat said:

In the olden days budget duty changes always used to be from 6 o'clock same day.

Memories of the queues outside petrol stations late afternoon on budget day.

Our local petrol station had a big old queue today

user1977

I think even "immediate" rises technically only apply to the fuel at an earlier stage in the chain, but that doesn't stop the retailers putting the prices up immediately.

MikeJXE

Probably 6pm 

thats why I topped up yesterday 

Why wait till the last minute when you will need it anyway 

facade

user1977 said:

I think even "immediate" rises technically only apply to the fuel at an earlier stage in the chain, but that doesn't stop the retailers putting the prices up immediately.

Many years ago I worked as a petrol pump attendant (remember them?)

The garage owner would sit in his office glued to the radio on budget day, and as soon as the duty raise was announced he would run (literally) outside to put the prices up!

Then everything extra he collected before 6PM was his, not HMRC's.

IIRC, the pumps had to be read and logged at 6PM, presumably he then had to pay duty at the new rate on every litre sold from that point.

400ixl

user1977 said:

I think even "immediate" rises technically only apply to the fuel at an earlier stage in the chain, but that doesn't stop the retailers putting the prices up immediately.

Its a tax taken on the end point delivery to the customer. It does not tax the supply chain at all.

This is why it can be done pretty much immediately and is compulsory, not something the retailers have a choice in when they do it.

facade

400ixl said:

user1977 said:

I think even "immediate" rises technically only apply to the fuel at an earlier stage in the chain, but that doesn't stop the retailers putting the prices up immediately.

Its a tax taken on the end point delivery to the customer. It does not tax the supply chain at all.

This is why it can be done pretty much immediately and is compulsory, not something the retailers have a choice in when they do it.

It is a beautiful system, like VAT it turns retailers into tax collectors, and all HMRC has to do is count the money and audit a few of them every now and then to discourage "creative accounting".

Mildly_Miffed

Fuel duty unchanged - the 5p discount remains for another year.