Experts have called on the Government to slash taxes on public charging if Labour decides to freeze the rate of fuel duty for petrol and diesel drivers.
Ministers have been told to reduce the rate of VAT on public electric vehicle chargers across the UK from 20 per cent to five per cent, bringing it in line with home chargers.
Campaigners argue that this should be done if the Government moves forward with plans to freeze the rate of fuel duty in response to soaring petrol and diesel costs.
The conflict in the Middle East has sent global oil prices soaring to $117 (£88), further forcing up the cost of fuel in the UK and around the world.
Prime Minister Sir Keir Starmer and Chancellor Rachel Reeves have confirmed that the Government is keeping policies around fuel duty “under review”.
Under current plans, the 5p per litre cut to fuel duty, which was introduced following Russia’s invasion of Ukraine, will be phased out gradually over the next year.
This will see the Government reverse the cut by 1p in September, 2p in December and 2p in March 2027, bringing fuel duty rates to pre-2022 rates.
Experts now argue that the Government must also cut the rate of VAT on public chargers to ensure all drivers are helped at a time when prices are spiralling.
Escalating tensions in the Middle East have caused a spike in oil prices, prompting experts to urge the Government to act
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GETTY/REUTERS
Ginny Buckley, chief executive of Electrifying.com, highlighted how drivers who are able to charge their vehicles at home can do so for as little as 2p per mile.
However, those who need to rely on public chargers to use their electric cars will pay “closer to 18p per mile”, which is higher than the equivalent of running a petrol vehicle.
She told the Press Association that VAT remained a major factor preventing drivers from switching to electric, as well as why motorists were being charged more to travel.
The expert added: “Drivers without access to home charging are the ones paying the highest prices – which seems fundamentally unfair.”
The latest data (19/3) shows that Brent crude oil prices have soared to $117 per barrel
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OILPRICE.COM
A recent ruling stated that public charging rates should attract the same VAT rate as home chargers, in what could become a landmark case for drivers.
A decision could also be made sooner rather than later as President Donald Trump continues to threaten Iran with further strikes following the death of its Supreme Leader, Ayatollah Ali Khamenei.
An Iranian attack on the Ras Laffan Industrial City in Qatar caused “extensive damage” to the world’s largest liquefied natural gas hub, with QatarEnergy and Shell issuing warnings.
Writing on social media site Truth Social, President Trump warned that the US would “massively blow up the entirety of the South Pars Gas Field” in Iran if Israel or Qatar were to be attacked.
President Donald Trump threatened to ‘massively blow up’ South Pars Gas Field in Iran
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REUTERS
Ben Nelmes, chief executive of New AutoMotive, warned that electric vehicles would also be affected by soaring energy costs as a result of the conflict in the Middle East, just like petrol and diesel drivers.
He said: “Households with EVs will feel the impact of higher bills first. With 1.8 million EV drivers now on UK roads, this is no longer a niche issue.
“The Chancellor should act to ensure these households are protected from the knock-on costs of the Middle East conflict.”
Labour has already confirmed that it will not raise the rate of fuel duty in line with inflation from April 2026.
