CUT FUEL DUTY TO BOOST BRITAIN'S ECONOMY, SAY PETROL RETAILERS
Published 18/11/2016 00:00:00 in Press Releases
"A fuel duty cut will provide a reassuring boost to businesses and consumers alike", said Chairman of the Petrol Retailers Association Brian Madderson in a hard hitting letter to the Chancellor, after emerging from a meeting with Treasury officials. With the economy facing the twin challenges of a weaker pound and a stronger oil price, forecourt bosses say consumers need more money in their pockets to keep the economy resilient.
“As I write”, said Mr Madderson, “the pound is down 27 cents on the dollar on the year, and the price of a barrel of Brent crude is up 4.0% on the year.”
The letter goes on to state that the Treasury is enjoying a £1bn duty windfall from petrol and diesel sales this year. Mr Madderson also states:
“The very rapid growth of online deliveries is one of the cornerstones of the UK’s economic improvement. Road usage by Light Goods Vehicles (LGV) rose by a staggering +6.3% in 2015.
“Pump prices are hitting consumers hard, resulting in an estimated £5bn reduced spend by consumers on an annualised basis. Average pump prices are 117 pence per litre (ppl) today compared to 104 pence in January 2016.
“The Treasury could regain up to £1billion in revenue by collecting more fuel duty from long haul hauliers. Foreign and returning UK hauliers are filling up on the continent due to lower diesel duty (20 to 30% lower in Belgium and Luxembourg). Lower fuel prices in the UK would mean more money comes to the UK Treasury. The Border Force and DVSA could be given powers to fine lorries that are found to be overloaded with fuel, beyond say 300 litres.”
Mr Madderson told reporters that he has met this week with Treasury officials and that he now “trusts that the Chancellor is warming to the idea of a fuel duty cut and that his Autumn statement will set the economy on the road to prosperity.”
NOTES TO EDITORS:
Trend volumes for petrol and diesel show -0.5% decline and continuing +4.8% growth respectively, year on year (yoy). Retail crossover with diesel demand outstripping petrol took place mid-2015.
With overall fuel volumes up yoy +2.8% for the first half of 2016, on present trends this could reach +3.0% for the year - close to 47bn litres sold for the year. This will produce a windfall tax gain this year from extra duty exceeding £870mn (1.5bn x 57.95ppl).
Add the extra VAT from the retail volume increase with higher prices and the Treasury will benefit by considerably more than £1.0bn.
The Petrol Retailers Association (PRA) is the representative body for the UK’s independent fuel retail network. The sector comprises nearly 6,000 independent forecourt retailers which account for around 70% of the total number of fuel retail sites.
Rupal Rawal, Press Officer
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The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.