Home Local News County Cllr calls on Government to intervene on fuel prices

County Cllr calls on Government to intervene on fuel prices

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cllr julie gibson
Cllr Julie Gibson

County Cllr Julie Gibson, the Labour Group Shadow Cabinet Member for Economic Development has echoed calls from driving groups who have called on the Government to intervene to address rising fuel prices. The call comes after the cost of filling an average family car with petrol hit £100 for the first time. The RAC motoring group called it “a truly dark day” as the cost of filling a 55-litre tank reached £100.27 for petrol and £103.43 for diesel.

Cllr Gibson said: “I support calls from the RAC and the AA who have urged the chancellor to cut VAT on fuel or to reduce fuel duty further. For consumers paying around £1.90 per litre at the pump, approximately 90p goes to the government in the form of fuel duty and VAT.* The Treasury could easily afford to offer more help, as the higher fuel prices rise, the more it collects in VAT receipts.

Cllr Gibson continued: “I am worried that rising petrol prices are putting pressure on already-stretched household budgets, with energy bills and food prices also now at multi-year highs. The rate of Inflation – or the cost of living – rose to a 40-year high of 9% in April, with higher energy bills and fuel prices contributing to the increase. With Lancashire being a semi-rural area, where many people rely on their cars for everyday living needs, this really is a cost-of-living crisis. People in my own area of West Lancashire are saying to me it is becoming ridiculous. Even the head of the CBI, Tony Danker has warned that households will go into recession later this year as people cut spending to combat rising living costs.”

Cllr Gibson said: “There are concerns that petrol retailers are not passing on the recent 5p cut in fuel duty to consumers. I therefore welcome the moves from the Business Secretary who has asked the Competition Authority to investigate whether this is the case; but this alone will not stop rising prices. We need concerted action from the Government to reduce fuel duty further or risk pricing many drivers out of the market.”

 

*fullfact.org/online/petrol-diesel-pump-price-fuel-tax 

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