"The data reflects a broader shift in transport trends, with more motorists moving towards electric vehicles and reducing discretionary travel. The fall in receipts was indicative of a longer-term shift to electric vehicles."
"While higher prices might normally support Treasury income, the decline indicates a clear reduction in fuel usage across the economy. The latest figures suggest consumption is falling faster than prices are rising."
"The shift poses a growing fiscal challenge for the Government, which remains heavily reliant on fuel duty receipts while also facing pressure to accelerate the transition to low-emission transport."
Fuel duty income has decreased to £24.3 billion from April 2025 to March 2026, a drop of £100 million from the previous year. This decline occurs despite rising pump prices, indicating a structural change in road usage and vehicle technology. Experts note a shift towards electric vehicles and reduced discretionary travel. The fall in fuel duty receipts reflects a longer-term transition, with concerns about the government's reliance on this revenue stream amid pressures for low-emission transport adoption.
Read at London Business News | Londonlovesbusiness.com
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