The PRA is calling on Government to not only cancel the planned duty rise for fuel on 1 September, but to announce a 2 pence per litre duty cut in next week’s Budget.
The PRA also advises that this reduction in duty should not be implemented until 1 April, to give forecourt operators time to manage their stocks so they can rapidly introduce the lower priced fuel after implementation.
Following its Budget submission last month the PRA has been conversing with Sajid Javid MP, economic secretary at the Treasury, on ways the Government can help to relieve the financial pressures caused by the rising cost of fuel on both businesses and consumers.
“Government must take decisive action on high fuel costs in the upcoming Budget,” said PRA chairman Brian Madderson.
He continued: “While it is very important that the Government takes the step to cut duty, it is vital that the implementation of such a cut is delayed.
“Independent fuel retailers pay excise duty in advance so they will be unable to pass this on immediately. Once forecourt stocks are replenished with fuel at the lower duty rate, fuel retailers will then reduce pump prices accordingly.
“Against the PRA’s advice, the Chancellor chose to implement the previous duty cut at 6pm on Budget Day and was roundly criticised by the media when the cut failed to be introduced by forecourts straight away.”