By Louise Barnett and Mark Reynolds
The Daily Express today launches a crusade for the Government to end drivers’ pain at the pumps by slashing taxes on fuel.
Motorists and hauliers have suffered crippling price hikes of up to 30 per cent in petrol and diesel bills in the past year because of “painful” fuel levies.
The Treasury has enjoyed a £505million windfall since April 1 alone from oil prices which yesterday set a new record by soaring to $132 a barrel.
And Gordon Brown is set to cream off £7billion by the end of the tax year.
Yesterday the average price of unleaded fuel stood at 113.67p a litre. Of this 50.35p was taken in duty while VAT, at 17.5 per cent, was 16.93p.
The average litre of diesel is now 125.95p with a duty levy of 50.35p and VAT at 18.76p.
The rest of the price is split between the fuel producer and the retailer.
The sky-high prices yesterday saw rioting on the streets of Paris as angry workers clashed with police over fuel costs.
Next week London is set to grind to a halt with calls for a thousand lorries to take to the streets to deliver a petition over rising fuel prices.
The Daily Express today calls on the Government to scrap the planned increase of 2p per litre planned for October. And this newspaper will crusade for duty on fuel to be slashed to reduce the financial suffering of British drivers.
Industry experts last night backed our campaign to ease the burden on drivers.
Mark Wallace, TaxPayers’ Alliance campaign director, said: “It is fantastic that the Daily Express and its readers are campaigning for a reduction in this unfair and painful tax.
“The 2p increase has to be scrapped and tax cuts should follow immediately afterwards. The pressure on ordinary families has got to be relieved.”
And accountants Grant Thornton say the Government’s huge windfall from taxes plus VAT on fuel mean it could afford to knock 9p a litre off fuel duty.
AA president Edmund King said the Government should cut fuel duty in light of the huge revenue it got from North Sea oil.
“If one does the calculation looking at the extra VAT and North Sea revenue, they could afford to bring it down by another 2p. So scrap the 2p increase and take 2p off,” he said.
Diesel prices have surged by 31 per from last May’s average of 95.80p per litre while a litre of unleaded petrol is up 21 per cent from an average 93.98p.
The huge diesel cost increases have pushed some haulage firms out of business.
But industry experts predict more price hikes to come because oil is getting more expensive.
Higher transport costs impact on all UK households because they eventually push up the price of shop goods and inflation.
The Freight Transport Association wants the Government to halve UK diesel duty because European rules will soon allow hauliers from the Continent greater scope to operate in the UK, putting yet more pressure on local firms. James Hookham, from the Association, said: “The days of British hauliers paying the highest fuel duty in Europe must be numbered. The Chancellor has got six months to cut diesel duty to EU average levels of 25 pence per litre.”
Road Haulage Association spokeswoman Kate Gibbs said many hauliers simply could not afford the rising diesel costs.
“We want to see Government stepping in and doing something now,” she said.
Robin Simmons, spokesman for the Association of British Drivers, also backed the call for fuel prices to be reduced.
“At the very least the VAT and tax increases they have gained as a result of the higher oil prices should be given back to the motorist,” he said. Calling for the 2p fuel duty hike to be scrapped, Mr Simmons added: “There is no question that it should be scrapped immediately. If he [the Chancellor] increases that I think we could even see riots in the street.”
RAC motoring strategist Adrian Tink called on the Government to step in and help motorists. “They can have some direct impact on what we pay at the pump. They have the ability to protect those people who elected them from the rising prices,” he said.
“Does the Government have a figure in mind where it will say, when the price at the pump hits a certain figure, we will intervene? Because the silence is deafening at the moment.”
Vince Yearley, Institute of Advanced Motorists motoring trust spokesman, said: “It does feel as though things are escalating beyond the budget of the average motorist,” he said.
Protests hit France yesterday as fishermen lobbied the authorities over high fuel costs.
British holidaymakers were caught up in travel chaos as the striking fishermen brought misery to thousands trying to cross the Channel by blocking entry to both the major ports of Calais and Boulogne with lines of fishing boats.
And in Paris, 200 fishermen clashed with police in violent protests outside the Agriculture and Fisheries ministry over demands for compensation against the high fuel costs.
A Treasury spokesman said last night: “To respond to short- term pressures, we announced in the Budget that the 2p per litre increase scheduled for April 1 would be deferred until October.
“Fuel duty has fallen by 16 per cent in real terms since 1999. Even after the increases in this Budget, it will still be 11 per cent below its 1999 level in real terms.”
