RMI Petrol chairman offers final plea to chancellor in hope of halting proposed fuel-tax increases
Madderson commented: 'With financial meltdown severely impacting parts of the Eurozone, several commentators suggest that the UK is now even more likely to see a double dip recession in 2012.
'Already the country is struggling with record levels of unemployment. RPI inflation increased to 5.6% in September and retailers are facing a difficult winter with energy bills ramping ever upwards and declining exports.'
It is not easy to be overtly positive and we are now warned again about dire prospects for global oil prices. The highly respected International Energy Agency (IEA) forecast prices rising to US$150 per barrel if insufficient investment is made into securing new production. Also, one City analyst projected US$200/barrel if the nuclear concerns about Iran were to materialise into prte-emptive action, most notably by Israel.
Meanwhile George Osborne’s plans, detailed in his 2011 Budget, to milk consumers of another £3.5bn/year with fuel tax increases of 4.00 pence per litre (ppl) on January 1 and another 4.00ppl on August 1, have yet to fully sink in with motorists and the media alike. These new tax hikes are unsustainable and must be cancelled if we are to avoid prices at the pump from forging over 150ppl next summer.
Madderson continued: 'The Chancellor’s last chance to prove that the Government does understand the plight of businesses and consumers lies with his Autumn Statement on Tuesday November 29, when the proposed fuel duty rises must be cancelled.'