Reports claim that the fuel supply chain are ‘profiting out of a crisis’, as diesel and petrol prices are 10p to 14p per litre higher than necessary
With Brent Oil now exceeding $110 per barrel, diesel and petrol prices will raise up to £1.60 per litre in a matter of weeks, with predictions that prices could rise to £1.80 per litre in a matter of months.
Because of the prices, the government are seeing an annualised VAT windfall in excess of £2bn.
‘Having a huge impact on inflation’
Robert Halfon, vice chair of the Fair Fuel APPG said: “Record fuel prices are just un-affordable and are having a huge impact on inflation.
“The government need to look at either reducing VAT on fuel or reducing fuel duty. We also need a FairFuelUK Pumpwatch monitor to ensure that prices are in line with wholesale oil prices.”
‘Motorists continue to be over-charged for their fuel during a period of rapidly rising inflation’
Craig Mackinlay, chair of the Fair Fuel APPG also stated: “A PumpWatch monitor similar to Ofwat or Ofgem could ensure that reductions in oil prices are properly passed on to motorists at the fuel pump.
“It is unjustifiable that motorists continue to be over-charged for their fuel during a period of rapidly rising inflation across the board. HM Treasury could also help by using the VAT windfall being derived from high current pump prices.
“The cost-of-living crisis is already proving incredibly painful for many, and sanity needs be restored to petrol pricing as quickly as possible.”
