As the 2024 Autumn Budget approaches, uncertainty surrounds what to expect and how to prepare, leaving fuel retailers concerned about potential changes and their impact on the industry.
At EKW Group, we stay informed about developments that could affect your business, ensuring you’re fully equipped for whatever the Autumn Budget brings.
Here are some of the rumoured changes that could impact fuel retailers.
As the 2024 Autumn Budget approaches, the industry is keen to see if the government will officially launch the PumpWatch scheme. Expected to boost fuel price transparency, the scheme would require fuel retailers to share real-time prices with a government body, accessible to drivers via apps and websites.
PumpWatch could save motorists up to 3p per litre by encouraging competition, as forecourts would be mandated to report price increases within 30 minutes of them happening.
While beneficial for motorists, this could present challenges for fuel retailers, increasing their administrative workload and affecting profit margins by adding pressure to remain competitive.
After the March 2024 Spring Budget, many motorists felt the Conservative government missed an opportunity to support the transition to electric vehicle (EV) fleets by not reducing VAT on public charging. With Labour advocating for sustainability, they may reduce VAT to make electrification more appealing to fleet operators and align with their environmental goals.
If EVs are more widely adopted by fleets, this will undoubtedly create issues for fuel retailers. They will have to adapt to changing times to compete with forecourts that offer both fuel and EV charging solutions, which would mean expensive infrastructure changes. There will also be pressure to compete with low-cost EV charging options, which will only become more affordable if the VAT is reduced.
Fuel duty was originally introduced to ease the financial strain on households and businesses during times of high oil prices and has been frozen for over a decade. In 2022, the Conservative government reduced it by 5p per litre, saving the average driver an estimated £200 a year.
Chancellor Rachel Reeves may remove this 5p discount, raising the fuel tax to 58p per litre. This would push the average petrol price to 145.61p per litre and diesel to 150.35p, saving the government an estimated £20 billion.
With an end to the freeze on the cards, consumers will be looking for ways to reduce the amount of fuel they use or will likely invest in more fuel-efficient vehicles to avoid spending more money. This may also accelerate motorists’ transition to EVs.
EKW Group are specialist franchise accountants for petrol retailers and forecourt operators, so we understand the unique challenges and concerns facing businesses in the fuel industry.
Budget changes can greatly affect the daily operations of fuel retailers, so it’s important to stay prepared. We can help ensure compliance, optimise pricing plans and forecast the financial impacts on your business, before helping you strategise how to adjust accordingly.
Contact us today through our Tax Manager, Chris Barlow, to ensure you are fully equipped for the Autumn Budget at [email protected].
