posted 6 years ago

Government scrap 3p fuel increase due in August

The government will not go ahead with the 3p per litre rise in duel duty in August

The government will not go ahead with the 3p per litre rise in fuel duty in August. Even though there will be no increase it is only a postponement until January next year. The decision follows a campaign by road users' groups, who argued the increase would damage the economy.

RAC Foundation director Professor Stephen Glaister said "this is good news for drivers and good news for the country. Given that tax makes up around 60% of the pump price, falls in the price of oil were only ever going to go so far in easing the financial burden on motorists."

Quentin Wilson, national spokesman for FairFuelUK, said "this is democracy at its very best where a government and a chancellor can review decisions, and act with fairness and common sense. Businesses and hard-working families across this country will breathe a grateful sigh of relief, at least for the rest of this year." FairFuelUK is supported by over a quarter of a million members of the public and was created by road hauliers and motoring organisations as a result of spiralling fuel costs which have a devastating impact on haulage businesses, their customers and ultimately everyone through the prices on the shelves.

The FairFuelUK Campaign began as a result of the cost of fuel soaring over the course of 2011, and has been campaigning against the threat that the government was set to raise fuel duty by 3.02 pence per litre on 1 August 2012.


From the Words of the BBC, Lets all be glad were not greece.

OK blame the government, most folk do without understanding the problem, collecting fuel duty is not a scam, its used to run our country, as is every other duty or tax. The latest fuel tax rise has nothing to do with psychology its about raising tax in general, and it was the last Labour government who raised the fuel duty before loosing the last election. When our present government took over our country was in effect bankrupt, due to (in my view) Labours miss handling of the economy, funding of the EU, and the open door policy, resulting in paying out ever increasing benefits to immigrants who have never put anything into our system. High fuel tax puts up the cost of your loaf of bread and helps to increase inflation, so the Chancellor has a balancing act, does he let the increase in duty ride and collect more much needed tax? Or does he hold back the tax rise and hope that the money in our pockets goes into the economy? my own view is fuel duty is a necessary evil but to stimulate the economy fuel tax should be cut!! and the the extra money in our pockets would then go into the economy and promote growth and jobs. Just don't blame this government for our problems, look at the track record of the last one.

i think the govememt need to get there own house in order.millions are wasted on bad admin and expences. there answer is hit the public, car tax,petrol,etc. it about time mps pockets was hit .we need working mps and not fat cats

Fuel Duty is a scam! What doi they do with all tghe millions they get from it - they don't use it to improve the roads, thats for sure. Also do they not realise that every time they increase the cost of fuel so the cost of everything else rises - including inflation - so this is a double whammy! Same situation applies to Road Tax - that also has a knock on effect. It would not be so bad if the Government used this as an incentive to get cars off the roads and more people onto public transport. However, we have the most expensive and inefficient public transport system in the World thanks to Thatcher and her Privatisation nonsense.

government psychology!! tell the public that they are going to increase the cost of something ... and then when they appear to change their mind ... the gullible public think that they are wonderful -

Its all very well dropping the increase. Tha shame is that it took protest from those outside the government to bring it about. It worries me that they didn't have the foresite to see for themselves in the first place.

@kerry, not entirely true Kerry. A little research will reveal that taxes and duties on fuel are even higher in some other EU countries. Germany for example levies almost 70% on a litre. In passing the TV licence, at about €230 pa (£185), is also much higher than in the UK

I agree with Kerry Voellner - it is a disgrace how much fuel duty we pay here. I'm a driving instructor and I earn less now than I did 7 years ago. Lesson prices can't be put up as the economy won't take it, fuel prices have soared and if that isn't enough the average 18yr old is being quoted £4k and £5k for their first year insurance! My daughter has now lived in Australia for the last 8 years - guess why that is???!

Increases in fuel will inevitably force drivers off the road which inadvertently results in less fuel duty for the government. This country pays more in fuel duty than anywhere else in the world. It is a disgrace