Chancellor planning tax grab against diesel drivers


“The Petrol Retailers Association (PRA) has been informed by a well-placed parliamentary source, that the Chancellor is likely to announce a 1ppl increase to fuel duty for all diesel drivers in this week’s Autumn Budget. This would be a thinly disguised tax grab using air quality issues as justification,” comments Brian Madderson, PRA Chairman.

Despite the Chancellor also planning a welcome 1ppl reduction to the duty on petrol, the move on diesel would benefit the Treasury by over £800M per year. With 80% greater annual volumes, diesel is the fuel powering the nation’s road haulage industry and the wider economy.

Madderson continued, “Along with other trade associations, we have repeatedly warned the Chancellor against such an economically regressive move because it will push up prices for consumer and businesses already suffering with inflation at a five year high.

“To force this increase at a time when crude oil and worldwide wholesale costs are ramping up, is also at odds with the Government’s avowed aim of supporting the UK economy in the lead up to our formal exit from the EU in 2019. Does the Chancellor really want to hammer already hard-pressed consumers, damage the economy, and make us less competitive with our European neighbours?

The PRA urges the Chancellor to scrap these damaging duty differential plans, and instead boost our economy by introducing a major cut in fuel duty in April 2018.

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About PRA

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.