How rising costs will affect UK drivers

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The standard rate increases by £10 and in the first year up to £120

In a typical year, the government collects £7 billion through vehicle excise duty (commonly known as road tax). It’s a lot of money, but he wants more. So from April the standard rate of road tax is increased by £10, while for the first year a car is registered increases will range from £5 for some of the less polluting cars to £120 for the worst offenders. On the plus side, electric cars will continue to attract no road tax and hybrid and alternative fuel cars will remain unchanged at £155.

Fuel

Gasoline and diesel up 30% and 36% respectively in 12 months, EV home charging energy up 54%

Rising fuel prices are the most obvious evidence of the rising cost of automobiles. Government figures reveal that at the end of March a liter of petrol cost £1.63, up from £1.25 a year ago, an increase of 30%. As a result, a car with a 55-litre petrol tank now costs £20.90 more to fill – from £68.75 in March 2021 to £89.65 today. And prices should continue to rise.

On March 23 this year, the Chancellor stepped in to help motorists with a 5p per liter fuel tax cut which will last until March 2023. The RAC welcomed the cut but said it would only bring prices back to where they were last week. before. Meanwhile, from this month, electric vehicles will be more expensive to charge at home when the energy price cap on some standard variable rate offers increases by 54%. This means that an EV with a 60kWh battery that currently costs around £9 to charge will instead cost £14 – £5 more. Users benefiting from a flat rate risk paying up to 80% more to charge their electric vehicles. There are still public charging stations, except that they are already at least twice as expensive as charging at home, partly because VAT is charged at 20%, instead of 5%. Worse still, in recent weeks some energy providers have increased their rates by around 11%. Further increases are expected.

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