Diesel fuel is pumped into a car at a petrol station near Knutsford

Cost of living: The fuel tax reduction has been erased as the price of diesel has reached a new record


Diesel prices have reached a new record and erased the chancellor’s fuel tax cut, the latest figures show.

According to government data, the average cost per liter of fuel at the pump reached 178.4 pp on Monday.

The previous maximum of 177.5 p was set two days before Rishi Sunak introduced on March 23 a reduction in fuel tax by 5 pence per liter.

This means that refueling a typical 55-liter family diesel car is about £ 26 more expensive than a year ago.

Gasoline prices also almost returned to pre-duty levels.

The average fuel cost was 163.7 penny per liter on Monday compared to 165.4 penny on March 21.

He comes at a time of growing pressure on the government to do more cost of living crisis.

Work calls for unexpected tax on the rapidly rising profits of the oil and gas giants as customer accounts grow – not even Mr. Sunak and Boris Johnson rule out this step.

Steve Gooding, director of the RAC Foundation, said: “As we feared, it didn’t take long and the 5p delay was swallowed up by global events that pushed pump prices back to record levels.

“The chancellor cannot be blamed for soaring oil prices, but he could and should go further in reducing tariffs.”

“While all attention is focused on the price of a barrel of Brent crude oil, the Chancellor continues to quietly collect only less than 50% of everything drivers pay in the courtyard.

“The windfall profits of companies like BP and Shell have been much criticized, but let’s not forget that record oil prices also bring the Treasury something extra in the form of VAT, which is imposed not only on the product. the price of petrol and diesel, but also customs duties. “

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Sunak on ‘times of trouble’ for the economy

Shadow Labor Minister Louise Haigh said: “Working people are facing a cost-of-living crisis and conservatives have literally nothing to offer.

“A work plan would help households overcome this crisis by cutting up to £ 600 by cutting energy bills, funded by a one-off unexpected tax on oil and gas giants who drive workers to a petrol station.

“The Conservative government must set an emergency budget to deal with the cost-of-living crisis – and support Labor’s call to put money back in the pockets of working people.”

Bernard Looney, CEO of BP, said his company’s investment plans would not be affected by any unexpected taxes.

He told the company’s general meeting on Thursday: “Our £ 18bn plans do not depend on whether or not an unexpected tax is introduced.”

But he added: “By definition, unexpected taxes are unpredictable – and so would be a challenge to invest in domestic energy … we would like to invest even more – and one of the key foundations of any such decision will be a stable fiscal environment. . “



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