KEEP IT DOWN GEORGE, SAY PETROL RETAILERS

Published 10/03/2016 00:00:00 in Press Releases

Chancellor must keep fuel duty frozen to hang onto his VAT and income tax receipts

Petrol retailers’ chief Brian Madderson today called on the Chancellor to heed his own words and keep fuel duty down in this month’s Budget.

Five years ago, the Chancellor ‘put fuel in the tank of the British economy’ by freezing fuel duty and leaving more cash in the hands of hard working families and businesses. This led to more goods being purchased and more people being hired.

“The Chancellor must keep duty down following the extraordinary rise in wholesale cost of fuel that we have seen in recent weeks,” said the Chairman of the Petrol Retailers Association Brian Madderson. 

“Motorists and businesses should expect a rapid rise in pump prices in the days ahead of around 5p per litre.  The Chancellor should heed his own words about putting fuel in the tank of the British economy.”

The Treasury published a paper in 2014 that proved that the additional spending generated more income tax and VAT than would have ever been raised by letting fuel duty rise. This is because savings on fuel costs led to spending on other services.  Retailers and transport firms use the savings to expand their businesses, while households increase spending on other services, the study says.

Madderson continued, “I trust he is listening to the Treasury officials who argued in 2014 that the short term gains that have been measured since the freeze was put into place will extend for decades, boosting GDP to higher levels than previously estimated.

“Fuel duty and VAT already represent around 75 per cent of the average pump price purchase.  A duty increase could take us back to the days of the haulage industry’s fuel supply blockades.”

City analysts are forecasting further weakening of £pound to as low as 1.20 versus US$ in the months ahead as financial institutions worry over a Brexit vote in June. This would add another 3ppl to pump prices.

“If the Chancellor increases fuel duty by 2ppl next week as some officials have hinted, then the impact on our economic recovery and inflation will be further magnified.  This would be massive blow to country as the overall effect could be a dramatic rise by as much as 10p per litre by the summer,” Madderson concluded.

 

ENDS

NOTES TO EDITORS: Brian Madderson is available for interview upon request.

Rupal Rawal, Press Officer
Tel: 020 7307 3412
Mob: 07528 977 157
Press Office direct line: 020 7307 3422
Press Office fax: 020 7307 3406

Web: www.rmif.co.uk  Email: rupal.rawal@rmif.co.uk

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.

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