Fuel duty increase postponed
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Issued 16 July 2008
The Chancellor of the Exchequer, Alistair Darling MP, today announced that he
is postponing the 2 pence per litre increase in fuel duty that was expected to
take place on 1 October 2008.
As a result of this decision, main road fuel duty rates will remain at 50.35
pence per litre after 1 October this year. This is 17 per cent lower in real
terms than in 1999.
Consequential, planned increases in road fuel gases, biofuel duty rates and
rebated oils rates will also be postponed.
Alistair Darling said:
"The global credit crunch and sharp rises in world oil prices have pushed
up prices at the pump. Today's decision will help motorists and businesses get
through what is a difficult time for everyone."
This measure is taken in response to sharp rises in world commodity prices,
with the price of oil almost doubling over the past year to reach a real-terms
record high of $146 a barrel recently. This has inevitably had significant
knock-on effects on the price of road fuels, which the Government is committed
to taking into account when considering decisions on fuel duties.
Postponing the planned increase in fuel duty is also consistent with the
Government's commitment to support the Bank of England in maintaining low
inflation. Future rate decisions are a matter for the Budget.
Notes for editors
If fuel duty had risen in line with inflation since the end of 1999 it would
now be around 60 pence per litre, and if it had risen in line with the escalator
it would be close to 80 pence per litre.
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Article Published/Sorted/Amended on Scopulus 2008-07-24 07:51:07 in Economic Articles