CEBR Fuel Duty Impact - Nov 2020

10 © Centre for Economics and Business Research Table 2 Percentage of expenditure spent on road fuel 6 2018/19 by income declle Households with cars All households Lowest ten per cent 8.17% 2.86% Second decile group 6.70% 3.62% Third decile group 6.02% 4.27% Fourth decile group 5.72% 4.58% Fifth decile group 5.79% 4.80% Sixth decile group 6.17% 5.24% Seventh decile group 5.59% 5.09% Eighth decile group 5.30% 4.99% Ninth decile group 5.31% 4.99% Highest ten per cent 4.21% 3.92% Source Family Spending Survey ONS: Family spending workbook 1: detailed expenditure and trends We have calculated the impact on family budgets of a 2p rise in fuel duty by income decile. This is shown i n Table 3. The amount rises from £18.72 a year for the poorest group to £46.38 for the highest income group. Table 3 Cost in £ of 2.1% increase in fuel costs by income decile Per week Per year Lowest ten per cent 0.36 18.72 Second decile group 0.36 18.81 Third decile group 0.41 21.22 Fourth decile group 0.46 23.75 Fifth decile group 0.56 29.08 Sixth decile group 0.65 34.04 Seventh decile group 0.64 33.48 Eighth decile group 0.71 36.94 Ninth decile group 0.84 43.80 Highest ten per cent 0.89 46.38 Source Cebr calculations based o n Table 2. 6 Technically this total includes spending on lubricating oils. But since monthly purchases of such oils are 34 tonnes compared with monthly purchases of fuels of 3.9 million tonnes this is unlikely to be significant.