Brown refuses to cut fuel duty

Tuesday, September 13, 2005

Chancellor Gordon Brown will not lower fuel duty to reduce petrol prices, and instead is calling on oil producers to increase the supply of oil to bring down world prices.

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Chancellor Gordon Brown will not lower fuel duty to reduce petrol prices, and instead is calling on oil producers to increase the supply of oil to bring down world prices.

However, pressure is mounting on the Chancellor to do something to head off a fuel crisis. Already pumps all over the country have started to run dry as motorists rush to fill up amid fears of a tanker blockade.

In scenes reminiscent of the fuel crisis of five years ago, petrol stations are being inundated with drivers panic-buying fuel. Some motorists have been sitting in queues a mile long for more than an hour to get petrol.

With the average price of a litre of unleaded petrol now 95.5p and with more than 47p in every litre of unleaded going to the Chancellor in fuel duty, the RAC Foundation has urged the Government to lower the amount duty paid when oil prices are high.

However, Brown believes that the only way to stop the spiralling fuel prices is to get OPEC, the association of oil-producing nations, to increase the supply of oil.

The Chancellor told delegates at the Trades Union Congress: 'It is because we understand the problems faced by hauliers, farmers and motorists at a time of doubling oil prices that we must firstly tackle the cause of the problem – ensuring concerted global action is taken to bring down world oil prices and stabilise the market for the long term.'

Whatcar.com has asked for your opinions on fuel before, but this issue just won’t go away. So we’re canvassing for your opinion on this current situation.

If you think Gordon Brown should reduce fuel duty to alleviate the problem click here and e-mail us your comments.

Or do you believe it’s up to the oil producers to increase production? If so, e-mail us your comments by clicking here.