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PRA praises decision to scrap duty increase but says cut was justified

05 April, 2013
Page 4 

The fuel industry has praised the Chancellor's decision to scrap the fuel duty increase due in September.

In his Budget statement, the Chancellor said he was cancelling the rise "to support motorists and businesses".

The PRA chairman, Brian Madderson, said: "Taking into account the projection of RPI in the first quarter of 2014, combined with the current 20% VAT rate, this action will save the motorist up to 3ppl.

"This could even stem the continuing decline in overall retail fuel volumes, which according to last year's government statistics, dropped by 2.9% compared with 2011.

"However, with the Treasury benefiting from the tax windfall of higher VAT over the last two years on ever-rising fuel prices, independent retailers had wanted this windfall to be used to cut fuel duty in this Budget."