FairFuelUK calls on Treasury Minister for oil pricing inquiry & fuel duty cut

The campaign team met with the Treasury Minister Priti Patel and Robert Halfon MP, PPS to the Chancellor to talk about the need for an immediate transparent enquiry into why the recent welcome oil price falls had not been passed on at the pumps.

FairFuelUK had already written to Mr Osborne a week earlier calling for this enquiry as to how prices are actually calculated when filling up our tanks. In particular FairFuelUK wanted assurance that duty would not be increased if oil fell to $75 a barrel.

In addition FairFuelUK repeated its call to the Minister for a 3p cut in duty in the Autumn Statement and March Budget, citing economic evidence that cutting duty is good for new jobs, increasing GDP and lowering inflation. It added that HM Treasury’s dynamic modelling found that the increased exchequer revenues resulting from the increase in economic activity will pay for around half of the initial cost of the Government’s action on fuel duty.

The final item on the meeting agenda was for the Minister to support FairFuelUK's call for fuel pump receipts to clearly show all taxes involved when filling up, not just the VAT.

Priti Patel, Exchequer Secretary to the Treasury, said: ‘I thank FairFuelUK for a very constructive meeting on ways to reduce the cost of driving, and I fully recognise the issues they raised. I assured FairFuelUK that this government is committed to supporting households and businesses with the cost of fuel, and has taken a number of actions over this parliament to do so, including scrapping the previous government’s fuel duty escalator, cutting fuel duty by 1 penny per litre in March 2011 and freezing it until the end of this parliament.

‘These actions mean that by the end of this parliament, petrol and diesel prices will be nearly 20p per litre lower than if we had stuck with the previous government’s fuel duty plans, saving the typical motorist £10 each time they fill their tank. FairFuelUK continues to make a significant contribution in parliament, and I look forward to us maintaining an ongoing open dialogue.’ 

For more of the latest industry news, click here.

Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.