RAC warn against raising fuel dutyBy Charlotte Whyatt - Wed 26th Oct 2016
Leading motorist organisation the RAC have urged Chancellor Philip Hammond not to raise the fuel duty in his Autumn statement.
Fuel duty is a kind of tax imposed on the British public by the Government and how much you pay will depend on the kind of fuel you purchase. The commonly used petrol and diesel for example, are much cheaper than LPG (Liquid Petroleum Gas) which is mainly used in high-powered industries like farming, construction and home heating.
The RAC’s plea follows the dramatic soar in fuel prices that the U.K has suffered over the past eight months. Simon Williams, lead fuel spokesperson at the RAC, estimates that on average the price has increased from just 102p per litre to around 116p per litre.
One of the biggest reasons for such a sharp increase in fuel prices is the so-called “flash crash” which occurred at the beginning of October 2016. Overnight, it saw the pound sterling fall 6.1% against the U.S dollar.
A rise in oil prices, caused by the whispering of a potential deal between those in OPEC (Organization of the Petroleum Exporting Countries) and Russia which would see both of them cut oil production as of November 2016, has also not helped the situation.
“If the Chancellor has been tempted to raise duty in next month’s Autumn statement as a result of recent fuel prices, the current uncertainty should make him think again” said Simon Williams “the outlook all of sudden looks far more ominous”.
Source: Forecourt Trader