RMI Petrol is preparing to meet with the Treasury at the end of this month to give its views on the government’s outline proposals for a Fair Fuel Stabiliser. The Coalition proposes to replace the Fuel Duty Escalator introduced by the previous government with a Fair Fuel Stabiliser that will see the 1ppl duty increase scrapped if the global price for crude oil increases above a certain level.
In a letter to RMI Petrol chairman Brian Madderson, the Treasury’s director of business and international tax, Mike Williams, has invited the association to submit its views with supporting evidence on the proposal to set that trigger price at $75 per barrel.
Madderson said: "This is not really a stabiliser mechanism as originally conceived. It’s just a step mechanism. The government hasn’t scrapped the inflation increase we still have a horrific 8ppl increase in duty next year so instead of the 1p plus inflation increase, it will just be inflation."
Madderson added that RMI Petrol will be holding an executive meeting on July 21.