PRA URGES TREASURY TO SHARE FUEL TAX WINDFALL WITH MOTORISTS

Published 21/01/2015 00:00:00 in Press Releases

“Following the Petrol Retailers Association’s (PRA) meeting with the Exchequer Secretary Priti Patel last week, the PRA continue to urge the Treasury to play their part in passing on the benefits of increasing fuel volumes, by immediately cutting fuel duty by 2ppl”, said Brian Madderson, Chairman of the PRA.

The PRA provided the Treasury with an analysis of Government data showing that the rapid fall in crude oil prices from mid 2014, together with an improving economy, had increased the overall volume of road fuels supplied by 1.6% to the end of September. If this trend continues, an extra £400m from excise duty would be produced compared to the same 12 months in 2013.

Madderson continued, “with more vehicles on the road after a record high of new car sales in 2014, lower crude oil costs continued to bring down prices even further, and with continuing economic growth, fuel volumes in 2015 could increase by over 2.0%  providing more windfall tax revenue.

“The Prime Minister and Chancellor have recently pressed oil companies and retailers to reduce fuel prices on the back of plunging crude costs as the “holy grail” of £1.00/litre becomes ever closer. However, at this level, it exposes the fact that 75% of the pump price is Government tax.

“Far from being damaging, such a cut would be tax neutral and further stimulate the economy and job prospects.”

 

ENDS

NOTES TO EDITORS:

Rupal Rawal, Communications 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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