With fuel prices predicted to rise by 5ppl by the end of this month the PRA is calling for a cut in excise duty.
The PRA has written to the Chancellor of the Exchequer advising that the Government should support the economy in the face of such fuel cost increases by reducing Excise Duty in his Autumn Statement, from 57.95ppl to 55.00ppl. Philip Hammond is due to deliver his budget statement, the first since he became Chancellor in July, on November 23.
PRA chairman Brian Madderson said: “This would be an extremely popular and valuable contribution to ensuring consumer spending does not start to fall away and damage business prospects as the new Government grapples with the aftermath of Brexit.”
Earlier this week Madderson forecast that the weakening of sterling against the dollar, and rising oil prices, would lead to a 5ppl increase in fuel prices by the end of the month.
Since Monday the average price of unleaded petrol reported by Experian Catalist has risen from 113.35 to 114.08, while diesel is up almost 1ppl from 114.62ppl to 115.46ppl.