April 4, 2019
Motorists currently pay 57.95p of tax per litre of petrol or diesel, with the rate now unchanged for nine years, despite recent rumours the government was considering changing it.
With the average UK motorist traveling about 7,800 miles every year, this equates to an annual fuel duty bill of around £1,000 per household.
To fill the finance gap, the Bloomberg report recommended the introduction of a mileage-based charge system, billing drivers 7.5p for every mile by 2030.
This would increase to 9.1p by 2040, when a total ban on the sale of new petrol and diesel vehicles in the UK will be brought in.
Based on the average annual mileage, this would mean drivers facing a bill of around £700 for road toll payments in 2040.
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