Chancellor George Osborne has announced plans to scrap the 3p fuel duty rise in January, giving drivers a much needed financial break.
Mr Osborne made the announcement in his Autumn Statement this past week, stating that the 3p rise in fuel duty will be scrapped in January and, in addition, the August 2012 fuel duty rise is to be reduced from 5p to 3p.
Many industry experts have welcomed the news. However, this appears to be a short-term solution to an ongoing problem.
Peter Carroll, who runs FairFuelUK, said; ìAdding another 3p a litre at this critical time for the economy would have been economic madness. Itís a little like a sick man being told that he was going to get worse, but then being told heís not! Like the sick man, the economy is still in a bad way.î
The cost of motoring has accelerated in the last year, forcing many Brits off the roads completely. However, now the January fuel duty rise is set to be scrapped, the industry may be able to recover.
In May, petrol shot up to a record high of 137.43 per litre. That figure has since fallen though, according to the AA. As a result, the habits of motorists have changed and many are driving less.
ìPetrol & diesel remain far too expensive. We will be fighting on to try and make the Government understand that the economy needs an actual cut in fuel duty,î continued Mr Carroll.
Mr. Osborne believes that having cut the fuel duty by 1p, families will be saving £144 on filling up an average family car by the end of next year. –
Adrian Tink, of the RAC, said; ìItís a victory for common sense. With people paying in excess of £1300 per year just to go about their daily lives this needs to be the first, not the last, step. This is welcome short term relief, but what is the Chancellorís plan if prices keep going up next yearî.
Experts have previously warned that prices could increase further next year to a staggering 145p a litre! Brian Madderson, Chairman of the petrol retailers group RMI Petrol, believes that petrol could increase by up to 145p for unleaded and 150p for diesel by next summer.
Whilst the fuel duty scrap might save you a bit of cash temporarily, why not shop around for car insurance to save more in the long run?
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