News from Labour Matters

Petrol would be 30p a litre more under the Tories says Chancellor

Planned increases in petrol and diesel at the pumps were cancelled today in recognition of the increasingly testing economic situation. Announcing that the planned 2p a litre tax increase, due to come into effect in the Autumn, will not now be levied, the Chancellor made it clear that this was to “help motorists and businesses get through what is a difficult time for everyone.”

As a result of this decision, petrol duty will remain at 50.35 pence per litre after October 1st this year and not increase to 52.35 pence per litre as expected.

“This is 17 per cent lower in real terms than in 1999,” said Alistair Darling. But he made the decision to freeze petrol duty because he recognised that “Britain is facing challenging times from the global economic conditions,” and added that “Labour is taking action now to help ease the pain for hard-working families.”

“This measure is taken in response to sharp rises in world commodity prices, with the price of oil almost doubling over the past year to reach a real-terms record high of $160 a barrel recently. This has inevitably had significant knock-on effects on the price of road fuels, which the Labour Government is committed to taking into account when considering decisions on fuel duties,” the Chancellor explained.

“By contrast, if Labour had continued the Tory policy of a fuel escalator, fuel duty would be around 80p per litre – not 50p – and petrol would cost an extra 34p per litre today, including VAT.”

AA president Edmund King said:
“We are delighted that the chancellor has seen common sense. Many motorists have endured months of misery and this is a welcome piece of good news for them.”

Other news from Labour Matters

• Southampton Labour release alternative 'Budget for Fairness' - 6 February 2012
• "Bleak unemployment figures are bad news" says John Denham - 12 October 2011
• Westminster Council to cut Taxicard budget by £500,000 a year - 11 August 2011