PRA URGES CHANCELLOR TO REAFFIRM FUEL DUTY FREEZE

Published 17/10/2014 00:00:00 in Press Releases

Brian Madderson, Chairman of the Petrol Retailers Association (PRA) has today written to George Osborne, Chancellor of the Exchequer, asking him to reaffirm his promise to freeze fuel duty until May 2015.

Madderson explained, “as global crude oil prices and the UK pound continue to fall, the threat of the Government reverting to the fair fuel stabiliser is a growing concern for businesses and the public.”

The unexpected crash of global crude oil prices over recent weeks has pushed Brent Crude Oil below $85 per barrel and analysts fear there could be further falls in the weeks ahead reaching as low as $75 per barrel.

Madderson’s concerns were heightened by Business Secretary, Vince Cable, who announced during the Liberal Democrat Party Conference that he felt the pound was still overvalued by 10 to 15%.

Madderson continued, “this will drive the pound down towards $1.35, closing in on the stabiliser “trigger” which is set at £45 per barrel. As the climate continues to be uncertain, the PRA is requesting the Chancellor re-commit to his promise and ensure fuel duty does not increase during the rest of this Parliament, remaining at 57.95ppl.”

 

ENDS

NOTES TO EDITORS:

1.     Fuel excise duty was reduced from 58.95ppl by 1.00ppl on 26/3/1.1

2.     The “escalator” mechanism was stopped in the same year.

3.     All subsequent proposals to increase duty were cancelled or deferred and then cancelled.

4.     As average pump prices have reduced by c.20ppl since April 2012, the proportion of tax (Duty + VAT) has increased towards 65%.


Katy Recina, Press Officer
Tel:     020 7307 3422
Mob:   07766022583
Press Office direct line: 020 7307 3422
Press Office fax: 020 7307 3406
Web: www.rmif.co.uk  Email: katy.recina@rmi.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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