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Fuel duty stabiliser on the cards?

There was a mixed reaction to the Prime Minister’s announcement that the Treasury is still ‘mulling over’ the introduction of a fuel duty stabiliser to help counter rising fuel prices.

The industry is desperately crying out for a break from spiralling fuel costs, but as yet there has been no definitive helpful action from the Government, only words.

David Cameron said this week that the recent rise in oil prices combined with the latest fuel duty and VAT increases was very “painful and difficult” for motorists. That’s a bit like calling a strawberry ‘red’, but it’s good to know the PM seems to be prioritising the issue.

He confirmed the Treasury is now looking again at a fuel duty stabiliser after seemingly shelving the idea in 2010. The system, if introduced would cause the percentage of tax paid by drivers per litre of fuel to fall should oil prices rise.

The Road Haulage Association (RHA) welcomed the news and demanded its implementation as soon as possible. Commenting on nearly £50 million in funding raised through fuel duty and VAT last year, RHA chief executive Geoff Dunning said: “The money is there. Let’s see some of it being used in a way that may well provide the lifeline that UK hauliers have been so desperately waiting for.”

Meanwhile, the national chair of the Federation of Small Businesses penned a letter to the Telegraph on the issue, saying: “Government must act now and introduce the fuel duty stabiliser so that there is not simply a relentless flow of increases which are putting small businesses on a knife-edge.”

The Fuelcard Company will be continuing its campaign for the Government to address crippling fuel duty this year and supports this recent news. However, we, like everyone in the industry, want action now, not just words.

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