Weather Afternoon: 8°c Sunny spells Tonight: 5°c Partly Cloudy Night

Business

Motoring groups condemn petrol tax rise

1 Apr 2009


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.

Reader views (2)

 Add your view

This government must want to lose the next election as almost everthing they do has a damaging effect on the electorate.
I look forward to being able to cast my vote - bring on the day.

- Angry Of Alton, Alton UK, 01/04/2009 17:16
Report abuse

The cynic in me says this was pushed through because the official measure of inflation is so low.
Such a pity that the government finances are in such a mess that this has to be done now to help keep their borrowings down.
Leopards do not change their spots - remember that Labour voters. I cant find any, but you must be out there somewhere.

- Dave Davies, Basingstoke, Hants, 01/04/2009 13:21
Report abuse


Add your comment

 

Terms and conditions Make text area bigger You have  characters left.

We welcome your opinions. This is a public forum. Libellous and abusive comments are not allowed. Please read our House Rules.

For information about privacy and cookies please read our Privacy Policy.


 

 

  • Relief for Sir Mervyn as inflation takes a tumble Osb and mervyn Bank of England Governor Sir Mervyn King has gained a major victory in his battle to bring down the spiralling cost of living as inflation...
  • Yell dives as print blow outstrips digital leap Yell Beleaguered Yellow Pages directories publisher Yell has seen its shares plunge as much as a quarter after a worse-than-expected slump in...
  • BHP and Rio bet on copper with mine expansion Rio Tinto The future is looking copper-coloured for BHP Billiton and Rio Tinto after the mining giants announced plans to invest $4.5 billion (£2.9...
  • Why saving may start to make sense again - just Piggy bank savings Long-suffering savers at last had some good news today when inflation fell below 4%, meaning there are now seven standard savings accounts...
  • City says timing wrong in Moody's UK rating threat Euro City economists have raised doubts over the timing of the threat by rating agency Moody's to slash the UK's AAA sovereign credit score,...
  • Hotel giant goes for Olympic gold as profits wow the City Intercontinental Hotels Hotelier InterContinental Hotels is looking to emerging markets and especially China to drive future growth
  • Bloomsbury takes a new passage to India Fashion book Publisher Bloomsbury is to set up a new business in India to take advantage of rapidly growing demand from the country's English-speaking...
  • Thai disaster floods Lloyd's with a bill for £1.4 billion Lloyd's of London Thailand's worst flooding in 50 years last October will cost the Lloyd's of London insurance market $2.2 billion (£1.4 billion), it has...
  • Bank of Japan increases stimulus to boost growth Japan Bank of Japan has added 10 trillion yen (£83 billion) to its 20 trillion yen pool of funds set aside for asset purchases in a surprise move
  • Brammer sees profits jump Box of tricks: DIY tools can be expensive to buy Industrial services group Brammer has posted a 41% jump in full-year pretax profit on strong demand
  •  
    Market Roundup
    TUESDAY UPDATE

    Valentine's massacre as City dumps Hampson

    No one likes getting rejected on Valentine's Day

    More