Introduce variable VAT on petrol and diesel as fuel prices change — 7 signatures. Status: open.
Introduce a variable VAT rate on petrol and diesel dependent on fuel prices change, keeping the total amount of VAT collected at pre-February 2026 levels. When fuel price rise, the VAT should fall below 20% to help motorists, and when prices fall it should return towards the standard 20% rate.
Rising oil prices are increasing fuel costs for motorists. However, because VAT is charged as a percentage of that price, the Government also collects more VAT. We are not asking the Government to restore previous fuel prices or reduce its original VAT receipts per litre. Instead, we ask for a variable VAT to prevent the Government collecting more tax overall on fuel, as fuel prices rise. We think a variable VAT rate would provide motorists with relief while maintaining the original VAT amount per litre during exceptional price increases.
View this petition on the official UK Parliament website