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Treasury
is considering an automatic fuel price stabiliser
A report in the Times today says "the Treasury is considering
an automatic fuel price stabiliser: cutting duty if oil prices
rise and increasing duty if they fall". The Treasury documentation
with the Emergency Budget set out in June 2010 mentioned two
measures - a possible "Fair Fuel Stabiliser" and a
"fuel discount in remote rural areas", suggesting
that a pilot scheme could be possible in Scotland.
UK motor fuel prices
The next increase in fuel duty - 1p a litre - is planned for
1st April 2011. Motor fuel prices in the UK have been driven
up by three fuel duty increases since last April, a substantial
rise in the price of crude oil, a fall in Sterling (making US
Dollar denominated crude supplies more expensive in Sterling
terms) and a rise in VAT in early January this year. Current
pump prices are typically 130p a litre and more and could rise
further over the next month.
Crude prices have risen 10% since the recent unrest in Libya
Libya is an important exporter to Europe with its sweet crude,
so the impact is significant.
Where can I see previous reports on the V8 website?
Ed Balls has thrown down a challenge over fuel costs. 270211
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Rising
fuel taxes will send motor fuel prices to new highs.
221110
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Next Budget - see our report on the V8 website
As usual we will have a report on the statement within an hour
or so of the Chancellor sitting down in the House of Commons.
The Budget announcement is due to be on Wednesday 23rd March
2011.
| See
our Budget 2011 report 22.3.11.
More |
Report posted: 020311
Graphic: Times 280211, from Phil
Slatter |
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