PetrolPrices.com founder slams delaying 2p duty rise as "not good enough"

12th March 2008

PetrolPrices.com founder has slammed plans by Chancellor Alastair Darling to delay the 2p rise in fuel duty. The rise was planned as part of a host of taxes aimed at motorists, to be announced as part of the 2008 Budget.

Whilst the announcement will be better news for motorists than a rise in duty, the plans are only to delay, not scrap the rise.

PetrolPrices.com has calculated that as the cost of petrol has already risen nearly 20p in the last year, so because of the way that fuel is taxed, the government now receives an extra 3.5p per litre compared to this time last year, because of rising oil prices. That equates to an extra £10 per month, per motorist, just in VAT.

“Delaying the 2p rise in duty is simply not good enough. With each week setting new price records, and motorists and businesses finding it increasingly difficult to afford fuel, it is imperative that Mr Darling doesn't just delay the 2p rise, but scraps it altogether. Motorists have had to suffer an 20% rise in the cost of fuel in the last year alone due to spiraling oil prices, but the treasury has in fact benefited from this because VAT is added on top as a percentage of the cost and duty.”

“The Chancellor could easily afford to scrap the rise completely – estimates suggest that the rise would earn the government around £1 billion, but he's already earned an extra, unbudgeted £1.2 billion just because of the rise in oil prices in the last year”

“Delaying the rise rather than scrapping it is an insult to the intelligence of the British public. Mr Darling is hoping that we'll forget about the rise, so he can bring it in again later when there won't be as much of a public outcry. If he thinks motorists have short memories he might have a big shock coming at the next election – over 15,000 people have already said that a 2p rise would make them consider voting the government out at the next election in our online poll.”

You can view the poll here:

http://www.petrolprices.com/blog/the-chancellor-must-scrap-the-p-fuel-duty-rise-93.html

The government currently adds 50.35p to the price of each litre of fuel, plus VAT charged at 17.5% on the basic cost of the fuel and the duty added together. If the Chancellor delays the rise, fuel tax will continue to be calculated this way until October.

Notes to editors

Petrolprices.com is the only free price comparison website for fuel prices in the UK. It allows consumers to search for the cheapest stations in their area, with potential savings of 15p a litre. PetrolPrices.com has over 2 million registered users, and 87% of 5000 users surveyed in September 2007 claimed the site saves them over £100 per year. As fuel prices rise the potential savings grow because the spread between the lowest and highest prices stations widens.

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Louise Doherty
Spokesperson

PetrolPrices.com
e:
w: www.petrolprices.com
p: 01252 367208