RMI Petrol has warned the Chancellor about the serious consequences of the government’s proposed fuel duty increases in 2012.
In a letter to George Osborne, ahead of the Autumn Statement on November 29, RMI Petrol chairman Brian Madderson recommended that the government again defers the proposed inflation-only duty increases planned for January 1, and August 1.
"If these increases were to be implemented, they would add up to a staggering 8ppl tax hike in seven months a level never before seen in the UK," said Madderson. "The government needs to address this smouldering tax bomb with the Autumn Statement. It cannot be right to press ahead with either of these crippling tax hikes, so the government must announce cancellation of both increases without delay."
Madderson also stressed the importance of the proposed ’fair fuel stabiliser’ trigger price of US$75/barrel being tied to Brent Crude, adding that the prevailing dollar versus sterling exchange rate, which is key to the daily wholesale spot market, should also be taken into account.
Madderson said fuel volumes had plummeted since 2008 from a combination of high taxes and high global oil prices which produced record levels at the pump of 137ppl for petrol and 143ppl for diesel last May. Despite Brent Crude oil prices falling to a recent low of US$100, wholesale prices to UK retailers in £/litre remained stubbornly high.