Chancellor 'misleads' on fuel - Introduction

The Association of British Drivers (ABD) has accused Chancellor Gordon Brown of misleading the public by claiming that the Organisation of Petrol Exporting Countries (OPEC) is at fault for current high oil prices.

The ABD said that even if OPEC producers gave the oil away for nothing, UK pump prices would still be more than 70p per litre – still higher than EU countries such as Greece and Spain.

Brian Gregory, chairman of ABD, said: 'It’s very misleading for Gordon Brown to blame OPEC; high taxation levels are the sole reason why UK prices are excessive.

'Around 75p per litre would be an acceptable price for most UK drivers. As this would entail OPEC providing their fuel for nothing, quite clearly the only way to make fuel prices acceptable is to cut tax.'

The ABD also said that high levels of fuel tax in fact forced OPEC to produce oil at unrealistically low prices throughout the 1990s, meaning that not enough investment was being made in new capacity to meet growing demand.

Last week, whatcar.com readers were asked whether the Chancellor should lower duty or whether OPEC countries should step up production to meet demand. More than 90% percent of those of you who replied felt a duty cut was urgently needed. Click on the links to read a selection of the comments.