PRA CALLS FOR VAT CUT TO OFFSET RISING FUEL PRICES

“Over the last 24 hours the price of oil has increased due to concerns over the events in the Ukraine.  We expect the rise in global prices to continue and be reflected in UK pump prices, as is the case all over the world.

“In terms of supply in the UK there is no shortage of fuel at our terminals and refineries, and we do not expect any significant disruption. In recent years, Russian crude oil and liquid natural gas has accounted for just 10 per cent of imports to the UK. Norway and the United States combined supply the UK with nearly 25 million tonnes of crude oil and liquid natural gas while Russia has been supplying the UK with under 4 million tonnes. However, as Russia is the third largest supplier of crude oil in the world any disruption of supply feeds through into the internationally traded price of oil which is also subject to exchange rate pressure as oil is traded in US$.

“Rising fuel prices have put further pressure on margins, and pump price increases are necessary to ensure that forecourt operators can continue serving their communities.

“We have noted calls from some quarters calling on the Government to either reduce fuel duty or cut the level of VAT on fuel in an attempt to reduce the burden for consumers. The PRA would support this move to help our customers.”

Gordon Balmer, Executive Director of the Petrol Retailers Association (PRA)

ENDS

NOTES TO EDITORS

The PRA represents independently owned forecourts which accounts for around 65% of forecourts and about 35% in terms of market share.