Motoring groups condemn petrol tax rise - Business - Evening Standard
       

Motoring groups condemn petrol tax rise

Motoring groups condemned a 2.12 pence-per-litre rise in petrol and diesel duty which took effect today, saying it would hurt ordinary people already bracing for recession.

The AA said the rises, announced in the pre-budget report in November, will take the average price for a litre of petrol across the country to 92 pence and diesel to over a pound.

The rise comes on top of a December duty increase of 2 pence a litre on both fuels which had been deferred from April 2008 when global oil prices were at record levels.

Those prices drove UK diesel and petrol prices to peaks of 130 and 124 pence per litre respectively in July of last year, according to AA figures.

"These April Fuel increases are no joke. It's a shame that this and other fuel tax increases will severely dent consumer spending and undermine the UK's economic recovery," said AA President Edmund King.

"Taking an extra pound off drivers each time they fill up their fuel tank is a pound taken away from high street and leisure spending that would help revive the economy," he added.

The Freight Transport Association (FTA) said the increases could "push businesses over the edge" and force some hauliers out of business.

More than 40 MPs from all parties have signed a Commons motionvoicing fears of the impact of the rises on the economy. The AA said the fuel duty rises took the tax element paid by motorists in the UK to 71%, one of the highest rates in Europe and second only to the Netherlands and Norway.

It also said that from April 2010 motorists face a further 4p a litre duty rise on both fuels.

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