CEBR Fuel Duty Impact - Nov 2020

2020 10 • Because they are so high fuel duties are one of the least effective ways of raising revenue because people alter behaviour to avoid them. • In theory, if behaviour remained the same a 2p rise would raise £950 millions. • But even the Treasury only expect to raise £470 millions. • Cebr estimates that it will raise between £250 millions and £470 millions. • But the tax revenue is falling sharply. OBR estimate that the revenues will decline by 80% within 20 years. So the long term revenue from a 2p rise will be only £50-100 million. Fiscal impact