Fuel duty increase is postponed

DiamondGeezer

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The planned 2p increase in fuel duty this October is to be postponed.

This is the second time it has been postponed - it was due to be introduced in March, but was delayed for six months because of rising oil prices.

Chancellor Alistair Darling said: "The global credit crunch and sharp rise in world oil prices have pushed up prices at the pump.

"Today's decision will help motorists and businesses get through what is a difficult time for everyone."

Mr Darling's announcement came ahead of a Conservative-called debate on fuel duty set to take place in the House of Commons on Wednesday afternoon.

Months of misery

The Tories are proposing a "fair fuel duty stabiliser" which would lower the levy when the cost of fuel goes up and increase it when it drops.

The RAC welcomed Mr Darling's announcement, but said: "It does not go far enough. We would like to see the chancellor not just postpone future rises but actually cut fuel duty."


AA president Edmund King said: "We are delighted that the chancellor has seen common sense.

"The prospect of extra, government-inflicted pain was not something that road users were looking forward to.

"Many motorists have endured months of misery and this is a welcome piece of good news for them."

Kate Gibbs, of the Road Haulage Association, said anything that helped the road haulage industry was "good news" although the postponement of the fuel duty rise represented "quite a small drop in the ocean".

The decision was disclosed in a response to a parliamentary question tabled by a Labour backbencher.

Hints

Mr Darling said: "Postponing the planned increase in fuel duty is consistent with the government's commitment to support the Bank of England in maintaining low inflation."

It comes as oil prices have nearly doubled over the past year and lorry drivers have mounted a series of demonstrations demanding cheaper diesel.

The AA said the cost of a litre of unleaded petrol averaged at 119.5p across the UK on Tuesday, with diesel averaging out at 133p.

Figures show petrol prices have risen nearly a quarter during the past year, and diesel 36%.

Earlier this month, Gordon Brown signalled that delaying the 2p rise was a distinct possibility when he said it was something he was looking at "very, very carefully".

Story from BBC NEWS:
http://news.bbc.co.uk/1/hi/uk_politics/7509156.stm
Published: 2008/07/16 10:04:04 GMT

© BBC MMVIII

Thankyou Chancellor
 

DiamondGeezer

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Why? Fuel duty is charged to the consumer, i.e. at the forecourt, not the fuel companies.

??
government are postponing a 2p rise but whats to stop the fuel companies adding an extra 2p per week. At the end of the day fuel prices are rising at a fast rate be it the government adding tax or the fuel companies putting the price up
 

little_pob

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government are postponing a 2p rise but whats to stop the fuel companies adding an extra 2p per week. At the end of the day fuel prices are rising at a fast rate be it the government adding tax or the fuel companies putting the price up

Right, got you now. I read the first statement as the fuel companies passing the cost of the tax rise to the consumer, hence me saying its the conusmer that pays it any way not the fuel company.

Fuel prices seem to have stablised for the moment. Whether its because crude has hit a peak price or if demand is down in the UK I don't know...
 

allroad

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wont make much difference by that time it will have gone up by £1 anyway
 
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