Motoring bodies urge fuel tax U-turn

The chancellor, Alistair Darling, was under increasing pressure from motoring groups to scrap the planned 2 pence rise in fuel tax in April.

With ordinary car drivers paying on average 103.9 pence per litre and hauliers paying 109.1 pence per litre of diesel, a 2 pence rise would not only lead to a rise in inflation from the forecourt but also from businesses passing on increased transport costs to the consumer.

As the current level of inflation is at 2.2 per cent, the Governments target is 2 per cent, the rise in fuel duty would only serve to push this higher this in turn would make the Bank of England think twice about another interest rate cut.

Motoring groups are worried that the rise would put further pressure on the transportation industry and those who are in remote areas, whether businesses or individuals, who have no alternate forms of transportation.

February 14^th 2008

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