The Petrol Retailers’ Association is calling on Chancellor Rachel Reeves to freeze fuel duty and reverse a planned rise in business rates from April next year in her upcoming Budget, steps it says would benefit an embattled industry, as well as motorists.
The PRA is also urging Reeves to “demonstrate her commitment to economic growth” by not increasing employer National Insurance contributions, something experts believe is being considered as a way of reducing what the government calls the black hole in the public finances left by the previous administration.
PRA executive director Gordon Balmer says such a move would “hurt both workers and employers at a time when businesses are already struggling with escalating costs”.
Balmer adds that maintaining a lid on fuel duty and business rates “will go a long way in keeping costs low for motorists and petrol retailers”.
Fuel duty has been held at 57.95p per litre since 2011, with a temporary 5p cut in 2022 in response to Russia’s invasion of Ukraine.
Balmer says: “Increasing fuel duty at a time of global uncertainty would put additional pressure on motorists and businesses, making essential travel even more costly. Petrol retailers are working hard to keep fuel prices as low as possible. Freezing fuel duty would help keep costs down for motorists and help the country continue down the path of lower inflation.”
Reeves can also take steps to reverse the “highest level of business rates on record”, says Balmer. “I hope the Chancellor takes this opportunity to announce a long-term plan to lower the multiplier, as local petrol retailers play a vital role in serving communities, while also promoting competition and helping to stabilise fuel prices.”
