Chancellor called to commit to fuel duty freeze

FTA is calling on chancellor George Osborne to show commitment to his plan to freeze taxes on fuel.

Chancellor George Osborne is being called upon to commit to his proposed freeze on fuel duty until 2015.

The Freight Transport Association (FTA) is asking Mr Osborne to follow on from his plan to freeze fuel duty until the end of Parliament, as he announced during a Conservative Party conference during September.

Mr Osborne announced during the Budget earlier this year that he would be freezing fuel duty, despite previous plans to increase it. FTA hopes that he will reiterate this plan during the Autumn Statement due on December 5th.

The freeze on fuel duty will no doubt have contributed to the lower average cost of fuel that consumers have seen recently.

According to the AA, the average cost of petrol now sits at 130.4 pence per litre while diesel is 137.8 pence per litre; this is the lowest seen since 2011.

The last time consumers saw prices this low was prior to fuel duty being cut during March 2011.

President of the AA Edmund King said: "On average, 28 per cent of AA members buy a set amount of fuel each time they go to a petrol station. This rises to 40 per cent for a younger drivers and 44 per cent for low-income ones.

"In September a £30 spend bought them 21.7 litres and now it buys them 23 - a boost equal to a free ten-mile round trip to work."

Yet AA warned that the price of fuel could rise again because wholesale oil costs may increase as a result of pressures abroad. Should this occur then an increase in fuel duty is likely to add pressure to car users.

When buying a new car, consumers should also consider the measure of miles per gallon to reduce the cost of fuel. Opting for a hybrid vehicle, with an electric motor combined with conventional engines, more often than not tends to lead to lower fuel consumption.

FTA has asked that the government introduce tax incentives for those who use lower emissions technology.

 

  • On: 03 December 2013
  • By: CarShop

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