Call to axe planned fuel duty rise - News in brief - Evening Standard
       

Call to axe planned fuel duty rise

Freight companies are urging Chancellor Alistair Darling to scrap plans to increase fuel duty by 2p from April 1.

The case for abandoning the planned rise is being put by representatives of the Freight Transport Association and the Road Haulage Association at a meeting with Mr Darling.

The 2p increase was first announced last year by the then Chancellor Gordon Brown.

Both associations believe that the big rise in petrol and diesel prices over the last few months - with pump prices now well over £1 a litre - has reduced the need for another increase.

In a letter to the Daily Telegraph, the associations joined other organisations, including the AA, RAC Foundation and the British Chambers of Commerce, in calling for the April rise to be scrapped.

In the letter, the organisations say: "At 50.35p a litre, UK fuel duty for diesel and petrol is already the highest in Europe. Indeed UK diesel duty is double the EU average rate of 25p a litre. The Chancellor now plans to increase this by 2p per litre from April 1.

"Such an increase will generate further serious difficulties for the transport and forecourt industries, business drivers, those dependent on the car, and for businesses or individuals in remote or rural areas with no alternative transport options."

AA president Edmund King said: "Our analysis shows that the Chancellor has already bagged an unexpected windfall of more than £4 billion from motorists and the oil industry in the last 12 months and therefore even if he scraps the threatened 2p per litre increase, he would still be £3 billion better off.

"The record pump prices are already hitting those on low incomes, rural, disabled and many car-dependent motorists, so an extra increase would be unjust, unfair and unnecessary."

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