PRA: Government should take 2p off fuel price
Following the Petrol Retailers Association’s (PRA) meeting with the Exchequer Secretary Priti Patel last week, the PRA is urging the UK Treasury to pass on the benefits of increasing fuel volumes, by immediately cutting fuel duty by 2 pence per litre.
According to Brian Madderson, chairman of the Petrol Retailers Association, the PRA provided the Treasury with an analysis of Government data showing that the rapid fall in crude oil prices from mid-2014, together with an improving economy, had increased the overall volume of road fuels supplied by 1.6 per cent to the end of September. If this trend continues, an extra £400 million from excise duty would be produced compared to the same 12 months in 2013.
“With more vehicles on the road after a record high of new car sales in 2014, lower crude oil costs continued to bring down prices even further, and with continuing economic growth, fuel volumes in 2015 could increase by over 2.0 per cent providing more windfall tax revenue. The Prime Minister and Chancellor have recently pressed oil companies and retailers to reduce fuel prices on the back of plunging crude costs as the “holy grail” of £1.00/litre becomes ever closer. However, at this level, it exposes the fact that 75 per cent of the pump price is Government tax,” Madderson commented.