“Drivers are facing unprecedented rises at the pumps”
County Cllr Julie Gibson has joined calls from consumer groups and motoring organisations to urge the Chancellor to cut VAT on petrol as reports show that the average cost of filling up a typical family car has broken through the £90 barrier for the first time ever. Motoring organisations said drivers were facing “unbelievable financial pain” as the cost of a tank of diesel for a 55-litre capacity family car reached £90.88.
Cllr Gibson said: “We are seeing fuel prices rising at unprecedent rates as oil prices have reached 14-year highs of around $130 a barrel. The average price of petrol across West Lancashire is now 165p for petrol and 170p for diesel. The rises will quickly feed into the overall cost of living as hauliers pass on their extra costs to their customers and ultimately to consumers, sending household costs soaring.”
She continued: “I would urge the Chancellor to help drivers by temporarily cutting VAT to at least 15 % from its current level of 20%. As it stands, 26p a litre of what drivers are paying on the forecourt is attributable to VAT and that comes on top of 58p a litre in fuel duty. Estimates show a five percent cut would reduce the cost per litre by around 6p.
Cllr Gibson said: “On March 23, the Chancellor will make his Spring statement to parliament. This would be the right time to introduce potential changes to reduce pressure on drivers. We are already seeing energy prices rising and cost of living increases, fuel prices rising is another hit to already stretched family incomes. This tax is causing unbelievable financial pain to drivers, and I urge the Chancellor to do the right thing and cut the VAT on petrol.”