The Petrol Retailers Association has written to the Chancellor of the Exchequer, John Healey, calling on him to make the 5ppl fuel duty discount permanent when he announces his Budget on 28 October.
The discount, introduced in 2022, was intended to provide temporary respite from the soaring fuel costs brought about by Russia’s invasion of Ukraine. It has since been rolled over in successive Budgets, while an increase planned for September this year called off in May to account for the price impact brought about by the Iranian conflict.
That stay of execution is set to end in January, though, when a 3ppl increase is due to arrive, followed by a 2ppl hike in March.
The PRA is urging the Chancellor to cancel those increases, though, advising him to use his Budget to make the discount a permanent fixture, keeping duty at 52.95p in perpetuity.
The body says this would bring about lower transport costs which would, in turn, “reduce inflationary pressures” while also “supporting household budgets and encouraging consumer confidence”.
The PRA, together with the Car Wash Association, is also asking Healey to reform business rates by offering retail companies the same relief offered to pubs, clubs and live music venues.
The organisations’ final recommendation is that hand car washes, which operate “in the shadow economy” should have to sign up to a mandatory national register. The PRA and CWA highlight that the sector is worth over £1bn, and could generate tax revenue of up to £475m if properly regulated.
Gordon Balmer, executive director of the PRA, says the ideas are “practical solutions that will protect consumers, businesses, and the wider economy”.
