Published 19/03/2014 00:00:00 in Press Releases

The Petrol Retailers’ Association (PRA) represents 5,500 independent forecourt retailers.

PRA Budget Comment

Brian Madderson, PRA Chairman



The Petrol Retailers’ Association welcomes the Government’s confirmation of the measure outlined in the Autumn Statement, to cancel the 2 pence per litre fuel duty increase in September 2014. Today’s announcement marks the longest period of duty freeze (4 years, 4months), in over 40 years.

Taking into account the projection of RPI% in the first quarter of 2014, combined with the current 20% VAT rate, this action will save the motorist up to 3ppl.

Brian Madderson, Chairman of the Petrol Retailers Association comments, “The PRA has been lobbying Government and the Treasury on the subject of fuel duty, so it is good news to hear the Chancellor’s commitment.

“However, the level of overall fuel tax in the UK remains amongst the highest in the EU. Despite the 10ppl fall in average pump prices since March 2013, fuel tax still accounts for around 60% of the purchase.

“The UK is one of the few EU countries to tax diesel at the same level as petrol with negative impact on the business community and the increasing number of motorists with diesel engine cars.

“A significant unintended consequence of this policy introduced by the last Government is to encourage foreign hauliers to fit long range tanks and fill up in Luxembourg where tax is less than 40% of the purchase cost.

“The PRA has estimated that the Treasury is losing up to £1.5bn revenue each year. Perhaps more importantly, this huge tax differential also provides continental hauliers with a competitive advantage over domestic companies, which miss out on their traditional UK contracts and are forced to reduce jobs as a result.

“If Government really wants to help the UK economy grow and prosper, an overhaul of fuel taxation is urgently needed”.




Rupal Rawal, Communications Assistant

Tel: 020 7307 3412
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Press Office direct line: 020 7307 3422
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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.

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