At 4.30pm on Wednesday, I will be leading a debate in Parliament on rip-off petrol prices.Having successfully applied for the debate, and battled for cheaper petrol and diesel for many years - I will call for the Government to look again at the planned 3p rise in fuel duty that is scheduled for August, and urge them also to launch a tough investigation into allegations of price-fixing in the UK oil market.
High fuel prices are literally forcing people off the roads. They are crushing businesses and families, and they are creating a poverty trap.
That's why I am asking the Government to look again at freezing fuel duty, and to do everything they can to pressure the big oil companies into reducing prices at the pumps. We need EVERYONE to do their bit, to help cut fuel prices for millions of Brits - to get our economy moving again.
That is the message of the new campaign that I am backing: www.PetrolPromise.com
Check out the website, to join the fight for cheaper petrol and diesel.
Harlow drivers will know - all to well - the strange irregularities of our fuel prices. Why is it that our petrol is always 4p or 5p more expensive than other nearby towns?
Interestingly, the OFT has not investigated the UK oil market since 1998, despite the fact that British petrol and diesel prices are now among the highest in Europe. That's why I am supporting the www.PetrolPromise.com campaign for this to be looked at. Enough is enough - we need action to sort this out.
Petrol prices are driven by two main factors (1) Crude Prices (2) Government tax and duty takes. It is ignorant to target the Oil companies whose pump prices are subject to local competition and who for years have made minuscule (if any) margins at the pump. Transportation costs will have a minor effect making prices somewhat higher in country areas. And competition is at lower levels away from the towns so the law of supply and demand may lead to marginally higher prices. But the differences are fairly small. Governments can do little or nothing about Crude Oil prices which means their influence is only on the tax/duty element. Here there is a need to balance the obvious need to use fuel as a mechanism of tax raising against the social cost. At least Fuel duty is proportionate to use - the more you drive the more you pay and given that most roads are free there is some justice in this. If we had more toll roads this might be different. The principal social benefit of fuel taxes is that they are Green; there is clear evidence of price sensitivity with citizens moving to the generally far Greener public transportation whenever and wherever they can. Many would say (I'm one) that petrol prices are far too low and that the duty should be increased whilst at the same time major investments should be made in better public transportation. And public transport sould offer price incentives over car travel wherever possible.
ReplyDeleteI support your moves to look into the oil industry and collusion. But the public finances can't support constant real-term cuts in fuel duty. Considering the damage done by pollution and congestion why should motorists get a tax cut when everyone is struggling? What level would you like fuel duty to be at?
ReplyDeleteAnd here's a question from left-field. Would you support a system of road pricing, as supported by the IFS, as a means of funding serious cuts in fuel duty?
Now that Sachin has scored his 100th ton, we may as well expect the petrol price to touch Rs:100/- very soon.....
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