The government are being urged not to implement a planned rise in fuel duty which would see the cost of diesel rising to 140 pence a litre from 1st April.
The price of crude oil is at its highest levels since 2008 at almost $100 a barrel. This, along with the rise in VAT has prompted motoring groups and opposition parties to call for the introduction a fuel stabilizer which would allow them to raise or cut duty in line with the cost of oil.
David Cameron has revised his earlier stance on the mechanism and says he is ready to act on the matter stating that the proposed fuel stabiliser is a very attractive idea. Previously the Prime Minister had said he did not want to raise people’s hopes of a reduction prematurely.
Cameron was also keen to assure people that the Chancellor George Osborne and the Treasury are exploring their options and looking for ways to share the burden, although the decision may have to wait until March’s budget.
Accessing fuel may also become a problem for the nation’s drivers as Unite announce that tanker drivers will be balloting members on proposed industrial action. A yes vote in the ballot which is thought to be taking place in February would result in disruption to the supply route of petrol and diesel. This action, says Unite, is not a protest over money but an attempt to raise national standards in the industry.
It is not just motorists who could suffer as a result of a further increase in fuel duty. The Office for National Statistic has revealed that the price of goods leaving factories in Britain rose dramatically in December and they have sighted the 12.8 per cent increase in petrol costs as the largest contributing factor.