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<p>The consumption of fuel is highly price inelastic. Therefore, fuel duty freezes
only have a marginal impact on the amount of fuel purchased, and therefore limited
impact on emissions.</p><p> </p><p>Households spend a significant amount of their
total spending on transport fuels, and fuel costs are a major factor in helping the
competitiveness of British businesses. Duty on fuel remains at 57.95ppl. The government
is also taking action to reduce emissions and improve air quality through Vehicle
Excise Duty and the Company Car Tax system.</p>
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