Brown urged to vary fuel tax - Introduction

The Government should introduce a variable tax on fuel to soften the blow of rising petrol and diesel prices, says the RAC Foundation.

With fuel duty and VAT making up nearly 75% of the price of a litre of petrol, the foundation wants the Treasury to lower the amount of duty it receives from motorists when the price of fuel is high and then increase duty when the world oil markets fall.

This variable tax would therefore maintain a more consistent price at the pumps.

Edmund King, executive director of the RAC Foundation, said: 'Such a system would bring relief to many millions of motorists and hauliers while helping to reduce hardship and increased inflation.

'It would help people to plan their spending on essential travel.'

Hurricane Katrina destroyed or severely damaged oil refineries on the USA's Gulf Coast, sending oil prices soaring. As a result, average UK prices are nudging towards £1 a litre.

Recently, whatcar.com asked its readers whether they would consider backing the boycott of BP and Esso petrol stations suggested in an internet e-mail in a bid to force the companies to reduce their fuel prices.

More than 58% said they would boycott BP and Esso, while 41% said they would not boycott. Click through the links for a selection of your views.