Government cut pump prices by 5p litre.

Posted by AndrewT on 4th Sep 2012

Unfortunately you need to live in France to be able to take advantage of this. But it does show that some countries recognise that the increasing price of fuel is having a detrimental impact on their economy and they are prepared to do something positive about it. Fuel prices in the UK have risen steadily over the recent weeks and are now at record levels. Consumers have less disposable income and supply chain costs will increase, resulting in higher prices for goods and less choice as businesses fold. Taxes make up about 60% of the pump price in the UK, the highest rate amongst all EU countries. Reducing fuel duty is one way of helping to stimulate growth in the UK economy and is leading the fight on this front. Their research shows that a cut of 2.5p per litre would boost growth by 0.33% and would be revenue neutral for the Government. The extra tax taken on the resultant economic growth would compensate for any perceived loss in fuel duty revenue. FFUK have been successful in persuading the Government to defer over 9p per litre of fuel taxes. The 3p per litre fuel duty rise that was planned for August has been frozen but will come into effect 1 January 2013. FFUK need our support in the light of the French example to fight for a fuel duty cut in the UK. So far over 300,000 people have signed up to support FFUK. If you haven’t done so already you can add your backing at The RHA is fully supporting FFUK and RHA Chief Executive Geoff Dunning issued his own statement saying: “Although we recognise that this is a temporary cut, it will be of great benefit to the French economy pending more permanent measures to curb fuel prices. If our own Treasury officials were to follow the example set by France, it would be a tremendous shot in the arm for the UK economy in general and UK hauliers in particular. We are facing another fuel duty hike in January; to have a duty reduction in the final quarter of 2012 would certainly buy our industry time and put extra money in people’s pockets. This will give a much needed pre-Christmas boost to the economy”.