FTA calls for cut in fuel duty

5th March 2012

According to figures from The AA the average price of a litre of diesel has topped 2011’s May peak of 143.04p, taking it to 143.05p; a new all-time high.  The pump price of diesel fell back to 137.59p in July last year before starting to climb again.

To put this in perspective, two years ago diesel in the UK averaged 113.62p/litre. For a van with an 80-litre fuel tank, the cost of filling up has risen from £90.90 in February 2010 to £114.44 currently, having dropped to £110.07 last July.

“A stronger pound has staved off this moment for longer than might have been expected, but diesel vehicle users across the country will have been watching in trepidation,” the AA president Edmund King said.  “They hoped that prices would hold until the spring, when winter price pressures on diesel traditionally ease.

“The impact of record diesel prices will be felt by everyone as higher transport costs are passed on to business and consumers, with some delivery and haulage firms adding a diesel surcharge to invoices.”

In its pre-Budget submission to the Treasury, the Freight Transport Association is calling on Chancellor George Osbourne to slash fuel duty by at least 5p/litre and scrap the planned increase due in August.  It argues that such action could save consumers and businesses £3.6 billion and give a shot in the arm to the UK’s economic recovery.