RMI Petrol has written to the Prime Minister urging him to set up a working party to produce a comprehensive plan for a fuel stabilizer. The stabilizer was proposed in the Conservatives’ pre-election manifesto and
would work by offseting global oil price increases by reducing duty.
Brian Madderson, RMI Petrol chairman, stated in the letter: "Failure to do so will, in my opionion, add further damage to the economy at a time when you are trying to stimulate growth and moderate inflationary pressures." He suggested that the working party should comprise both government and industry members.
The letter advised: "As an industry, my members have accepted your austerity budget, some with more difficulty than others, as being an essential dose of economic pain. Now we need to see signs of palliative care set out by both the Conservatives and the Lib-Dems championed in your respective pre-Election manifestos."
Madderson went on to explain that the Lib-Dems had proposed in their manifesto that they would investigate measures to “help with fuel costs in remote rural areas” as these do not always have suitable, alternative public transport systems available and are often economically challenged. He added: "Again, we understood that industry views were to be formally sought at the outset."
The letter warned that looming fuel duty and VAT increases would add another 5p a litre to pump prices – even without further movement of global oil pricing.
It added: "These increases will further increase inflationary trends so putting renewed pressure on the Bank of England to raise interest rates. A scenario that would be unattractive to both consumers and businesses alike as it could curtail any growth prospects in the economy."