The chancellor refused to axe the fuel increase scheduled for August 1st
The chancellor refused to axe the fuel increase scheduled for August 1st. The 3.02p increase will go ahead despite much lobbying by business and consumers. Average UK fuel prices are currently at a record 139.95p per litre of unleaded petrol and 146.54p per litre of diesel.
In the run-up to the budget, various motoring groups had campaigned for a further duty cut arguing that record high petrol prices were having a disastrous effect on individual household budgets and the economy as a whole.
Since March 2010, the price of petrol has risen 23.24p a litre or almost 20%. For a family with two petrol cars, the monthly fuel bill has risen £50 over the last 24 months.
AA president Edmund King described the chancellor's lack of action as a "budget blow-out" that will force drivers off the road. "We have heard much about tax allowances but the increase in fuel duty makes no allowance for car-dependent, rural and disabled drivers. Only last week the prime minister told American students that UK fuel prices would make them "faint", yet the government seems intent on inflicting more pain for no gain on drivers. Ironically, such a hike in duty doesn't necessarily help government finances as people will cut spending at the pumps and in shops, and it could fuel inflation," he said.