Motorists struggling with rising petrol and diesel prices could save more than £200 a year under proposals from the SNP to temporarily remove VAT from road fuel.

Moray West, Nairn and Strathspey MP Graham Leadbitter has challenged the UK Chancellor to announce the measure in Wednesday’s Budget, arguing that households need immediate relief from increasing motoring costs.

The demand follows new analysis commissioned by the SNP from the House of Commons Library, examining fuel prices since Andy Burnham became Prime Minister in July.

According to the figures, average petrol prices have risen from 150p to approximately 175p per litre, while diesel has increased from 165p to around 199p.

That represents increases of 25p per litre for petrol and 34p for diesel in just a few months.

Official weekly fuel price figures for 19 October confirm that petrol averaged approximately 174.6p per litre across the UK, with diesel reaching 199.3p.

For Highland motorists, particularly those living in rural communities where public transport alternatives can be limited, rising fuel costs place additional pressure on household finances.

The SNP estimates that temporarily removing VAT could save a typical petrol driver approximately £227 annually, rising to £287 for diesel drivers.

Those estimates assume current prices, existing VAT rates and annual fuel consumption of 780 litres of petrol or 860 litres of diesel.

The proposals would require the UK Government to surrender fuel tax revenue, with the final savings depending on whether retailers passed the reduction on to motorists.

Leadbitter argues that the Chancellor should prioritise immediate financial support.

He said:

“Andy Burnham has been asleep at the wheel as fuel prices soar in the UK.

“The Prime Minister promised he would cut the cost of living but every major household bill has risen on his watch and many families are now thousands of pounds worse off.

“He said he would be different but Andy Burnham is breaking his promises just like Keir Starmer.

“The cost of living is getting even worse and the Labour government is failing to act.

“In contrast, the SNP government is delivering the best cost of living support in the UK and our call on the Chancellor is to remove VAT on fuel for the duration of the crisis and cut energy bills could save households over £500.

“Removing VAT on fuel alone would put over £200 back into people’s pockets at a time when the cost of living is reaching crisis point in the UK.

“The time for excuses is over. Andy Burnham must act now.

“Scotland is an energy-rich country but we are being forced to pay some of the highest prices in Europe under Westminster control.

“It shows why Scotland needs independence to lower bills and build a better future.”

The proposal comes amid continuing pressure on household budgets, with transport costs affecting everything from commuting and school journeys to the delivery of goods and services.

Fuel duty and VAT are separate taxes, with the standard 20% VAT rate applied to the pump price, which already includes fuel duty.

Removing VAT would therefore represent a substantial reduction in the tax charged on each litre, although it would also reduce Treasury revenues.

The UK Government must weigh those costs against demands for additional support with energy bills, housing and other living expenses.

For drivers across Scotland, Wednesday’s Budget will reveal whether the Chancellor intends to provide further relief at the pumps.