Letter To My MP - Petrol Prices

Petrol prices are rising slowly to an outrageous level. For the younger driver, the cost of fuel coupled with the ever increasing prices for car insurance are making the costs of motoring prohibitive.

In January I wrote to my MP, Jack Lopresti to lobby him about introducing a Fuel Duty Stabiliser. The text of the original letter came from The FSB.

My email and his reply are below.

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Sent: 15 January 2011 13:46

To: LOPRESTI, Jack

Subject: Fuel Duty Stabiliser & EDM 1252

Dear MP,

Re: Fuel Duty Stabiliser & EDM 1252 (Fuel Duty Stabiliser)

I am the owner of a small business and I extremely concerned about increases in fuel duty, which have hit the small business sector the hardest.

Already the UK has the second highest diesel price in the EU and with VAT now standing at 20 percent, fuel duty is at a record high.

Whilst in opposition, the Conservative party pledged to put in place a fuel duty stabiliser to ensure an automatic freeze on fuel duty increases and a reduction in duty to match any increases in VAT revenues from higher pump prices. This was very much welcomed by the Federation of Small Businesses, of which I am a member.

However, I am now severely disappointed that the Government has not delivered on the promises made prior to the election.

The International Energy Agency has reported that the stability of the global economy is under threat due to oil prices entering a 'dangerous zone' and found that the increase in fuel duty will cost OECD countries 0.5% of their combined GDP.

I would urge you as my MP to sign EDM 1252 and to put pressure on the Chancellor and the Prime Minister to introduce the fuel duty stabiliser as a priority.

Yours sincerely

Sent: 27th January 2011 15:41

To: Nick Perry

Subject: Re: Fuel Duty Stabiliser & EDM 1252

Dear Mr Perry,

Thank you for contacting me about the cost of fuel and proposals for a fair fuel stabiliser, and EDM 1252.

Fuel is a huge expense for people in the UK. Whilst I am heartened by a recent report by the RAC which has demonstrated that the cost of buying and running a car has gone down in real terms over the last 20 years, I understand why fuel prices continue to be a particular concern for motorists, especially for those living in rural areas and those that travel frequently as part of their business.

It has been necessary to increase VAT in light of the dire state of the public finances as inherited from the previous Government. It was also the previous Government which instigated the recent increases in fuel duty. I understand the increased pressure these rises put on motorists. Responding to this, in 2010 the Chancellor of the Exchequer asked the Office of Budget Responsibility (OBR) to undertake an assessment of the affect of oil price fluctuations on the public finances and the possibility of a fair fuel stabiliser. The Treasury is considering the OBR's assessment and will report back to Parliament in due course.

The Government also intends to introduce a pilot scheme that will deliver a maximum of 5p per litre duty discount on petrol and diesel in remote rural areas. Ministers are currently considering the exact scope of the pilots and at present have announced their intention to include the Inner and Outer Hebrides, the Northern Isles, and the Isles of Scilly. The Government will report back to the House, in due course, prior to submitting a formal proposal on the scope and design of the scheme to the European Commission.

I welcome the Prime Minister's call for a fair fuel stabiliser to be appraised and I am glad that the Government is looking into the possibility of stabilising fuel prices. I await the Treasury's assessment with interest and look forward to the Chancellor making an announcement in due course. As I am confident that the Government will fully examine the possibilities for a fuel stabiliser, I am not able to sign EDM 1252 at this stage.

I very much hope that a solution can be sought to ease the pressure on the hard pressed motorist, rural communities and small businesses suffering under the high cost of fuel and thank you for bringing this matter to my attention. If I can be of any further assistance, please don't hesitate to contact me.

Best wishes,

Jack