This week we have seen the debate surrounding the proposed 3 pence per litre rise in fuel duty come to a head with the government announcing that the rise will be deferred until January 2013. The Retail Motor Industry Petrol Retailers Association (PRA) has welcomed the decision, believing that such a rise in fuel tax would unfairly penalise consumers on a low income, single families and rural communities.

PRA Chairman Brian Madderson has commented, ‘By delaying the duty increase the Government now has time to review the economy in time for the Autumn Statement when further reviews of fuel tax can be made…PRA is concerned, however, that the Chancellor is only delaying the duty increase until 2013. If the increase was to go ahead in January the 3.02ppl will in fact amount to 4.00ppl due to the 20% VAT added.’

The PRA has found that due to the oil companies and supermarkets fighting for a share of the declining petrol market, independent petrol station closures in the UK have been increasing. Approximately 300 forecourts have closed this year alone, and this decline in the independent sector is creating ‘fuel deserts’ in some areas of the UK. It is the PRS’s position that a rise in fuel tax will lead this problem to continue.

Maddison concludes, ‘PRA will continue to engage with Government to ensure that businesses and the condsumer are fully represented when future fuel taxation is being considered.’

How would a 4.00ppl rise in fuel duty affect you? Do you live in a ‘fuel desert’ where forecourt closures mean you have a longer drive to top up your car? Get in touch with us through Facebook and Twitter, we would love to hear your view of this debate as it continues.

For more information on the announcement visit the Retail Motor Industry website.

by Marc Yates

Post By Marc