Chancellor pushed for fuel duty cut

Chancellor pushed for fuel duty cut

The Chancellor of the Exchequer, George Osborne, has been encouraged to slash the duty on fuel in his forthcoming March Budget, in the wake of ever-rising fuel prices, and as a result, falling fuel sales in January.

Prices of petrol have escalated over the past month, with some parts of the UK seeing price increases of up to 6 pence per litre, which also equals a staggering fuel duty and VAT payment of 80 pence per litre. Campaigning groups such as FairFuelUK, backed by the RAC and celebrity motorist Quentin Wilson, have been highlighting the climbing costs of fuel, and are postulating that such prices are becoming unmanageable.

With the costs of petrol and diesel due to soar to their highest-ever price tag during the next few weeks, many campaigners are equating them to the largest financial hurdle currently in the way of UK motorists, and indeed may be a mitigating factor in the sluggish, if non-existent growth in the economy.

In fact, the current sales of fuels are at their lowest level for over 20 years, with 100 million fewer litres being bought in January 2013 than in December 2012. This equates to a loss in Treasury revenue of around £60 million during that month. To see price increases as a way to increase the sales of fuel is an act of folly. The UK motoring world waits with baited breath for the results of the March Budget.

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