High fuel taxes here to stay

Wednesday, November 28, 2007

Government refuses to bow to pressure
Downing Street 'prices lower in real terms'
Rolling road blocks rumoured for December

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The Government is unlikely to bow to pressure and reduce fuel tax, despite prices continuing to hit new highs.

The average price for a litre of unleaded petrol is currently 102.5p, while a litre of diesel costs on average 107.0p.

At present, fuel duty is charged at 53.65p per litre of unleaded fuel and 56.94p per litre of diesel. VAT is then added to this amount.

Despite the UK having the highest fuel taxes in Europe, however, Downing Street officials continue to insist that the prices are 11% lower than in 1999 in real terms, when inflation is taken into account.

Hauliers are putting particular pressure on the Government to lower taxes, claiming that high fuel prices are wrecking their business.

Although threats of hauliers taking their vehicles onto major motorways and creating rolling road blocks have so far not been acted on, reports suggest that there are plans for a major demonstration in the first week of December.