The UK has the second highest diesel price in the EU and with VAT now standing at 20 percent, fuel duty is at a record high. On average in the EU a liter of diesel is made up of 51 percent product price and 49 percent tax, whereas in the UK the average is 38 percent product price and 62 percent tax. The basic concept of the governments drive for a ‘fuel duty stabilizer’ is that when oil prices increase, the stabilizer will allow Government to reduce duty to a lower limit, and when oil prices fall, the Government will be able to raise duty levels to a higher limit.
To ensure that the Treasury hears from small businesses and independent drivers who are suffering from cash flow difficulties as a direct result of the increase in VAT and the ongoing fuel charges please email your local MP urging them to write to the Chancellor to keep their promise and bring in the stabilizer NOW. Our MP’s should all be more than happy to back this initiative and sign the Early Day Motion 1252 as soon as possible.