Chancellor should scrap his 2p fuel duty increase
THE price of oil on the world market is going up and down like a yo-yo. Mostly up.
In January, 2007 a barrel of oil cost $54 - by the end of December it was up to $100.
Not surprisingly, the impact of this increase has been felt by all car drivers and by the UK transport industry, which delivers the goods which sustain all of us every day of the year.
UK road users pay the highest rates of fuel duty in Europe - 50p per litre in fuel duty and then VAT on top of the whole price.
So for a pump price of 1.05 for petrol or diesel, the breakdown is 39p for the fuel, 50p for the duty and 16p for the VAT - the Chancellor gets 66p tax out of 1.05.
Clearly the Chancellor can have little influence on the world price of oil.
But, equally clearly, he can do something about the tax take - a massive 63 per cent.
Sadly, he presently plans to increase his take by adding a further 2p per litre to the duty level on April 1.
With the economy in some difficulty and inflation threatening, the prospect of higher fuel prices in the spring should worry us all.
Given that everything needs to be delivered and that diesel fuels those deliveries, then a fuel duty rise is itself adding to the inflationary problem.
The Freight Transport Association says that the chancellor should scrap his proposed 2p fuel duty increase.
Perhaps you do too?
MALCOLM BINGHAM
Head of Policy
Northern England Freight Transport Association
Springwood House
Low Lane
Horsforth
Leeds
LS18 5NU
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Saturday 26 May 2012
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