The Petrol Retailers Association (PRA) has written to the Chancellor stating that it would be economically imprudent for the Government to consider raising fuel duty from the present 57.95ppl in the upcoming Autumn Budget.
Brian Madderson, PRA Chairman comments, “With pump prices at an eight year high, any further tax rises would increase the inflationary basket for households, and as a result would lead to pressure on interest rates.
It is a regressive tax which hits poorer families and rural dwellers the hardest as road fuel is an absolute necessity for so many. It could also make Government borrowings more expensive to service and even restrict their financial flexibility as we go forward.
“The global energy markets are in turmoil at present as we all try to recover quickly from the effects of the pandemic on our economies, and the UK is not immune from such pressures.
“It would be inappropriate for our Government to add to this turmoil by raising fuel taxes. The Treasury’s own economic modelling based on the Laffer curve suggests that a modest cut would not be out of place.”
notes for editors:
The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses.