Fuel duty hike could cause ‘serious difficulties’
Published: 10:35, 11 February 2008
FREIGHT chiefs are calling on the Chancellor of the Exchequer to abandon plans to increase the duty on fuel in April.
The Freight Transport Association, based in Tunbridge Wells, is spearheading an industry-wide campaign to persuade Alistair Darling that the duty - 50.35p on every litre of petrol and diesel - is already too high.
They say in a letter to The Daily Telegraph that the planned increase of 2p a litre on April 1 would cause "further serious difficulties" for the transport and forecourt industries, as well as business drivers and businesses in rural areas.
UK duty rates are already the highest in Europe, with diesel duty double the European Union average of 25p per litre.
With Vat, the Government collects 66p for every £1.05 spent on a litre of fuel, around two thirds of the pump price.
In the letter, signed by FTA chief executive Theo de Pencier and others, including bosses of the Road Haulage Association, British Chambers of Commerce, and the Federation of Small Businesses,
they claim that during the past 18 months, British industry has experienced increased costs because of higher oil prices.
"At a time when we are suffering from the joint threats of an econommic slowdown and increasing inflation, the higher costs of transorting goods and servides resulting from price rises for fuel have impacted on every single company throught this country, and thus on their customers."
They concede that Mr Darling has no influence on world oil prices but they say he enjoys the "unbudgeted" income when it arises.
However, they say, he is responsible for the greater part of the cost of diesel and petrol.
"In the interests of every company moving goods and their customers and of the economy in general, we call on the Chancellor to recognise these problems and to abandon his plans for a 2p per litre increase in fuel duty from April 1."
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KentOnline reporter