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Pump up the volume: MPs call for petrol help

Deborah McGurran | 16:52 UK time, Tuesday, 8 February 2011

Petrol pump

Rising petrol prices - MPs' in-trays are bulging with emails.

Talk to any MP from our region and they will say that one of the main subjects dominating their in-boxes at the moment is that of fuel prices.

"I've had abuse shouted at me in the street over this issue," says Harlow MP, .

"It is a sign that we really must do something to help motorists."

Mr Halfon was among a group of MPs from the 1922 committee who raised the issue of fuel with the Prime Minister during a private meeting a few weeks ago.

"He was receptive to what we said," says Mr Halfon. "Now we must wait to see what comes in the budget."

Not content with lobbying the Prime Minister, it seems as if MPs from our region are determined to keep up the pressure whenever they get a chance.

about providing fuel duty relief for the Highlands and Islands of Scotland. Many Scottish MPs turned up and so did many from East Anglia. Their message was clear: If Scotland is going to get help, so too should our region.

"There are areas with pockets of social deprivation and low wages, such as the fens", said , the Conservative MP for Peterborough while asking the Treasury minister if, "she and her colleagues will perhaps consider that such areas also require some support and assistance from the Treasury with significant increases in fuel duty, which have an impact on working life there too?".

, the Conservative MP for Mid Norfolk, pointed out that in his constituency, "where I am lucky enough to have four towns, 110 villages and a 130-mile boundary, the rurality is extreme. Fuel currently costs 130p a litre, which means that the average family are paying £70 odd to fill up their car. That is not a matter to be taken lightly... we have a duty to make some gesture towards ameliorating this problem".

Mr Halfon said that if we were to cut the grant paid to Scotland we'd have more money to reduce fuel duty, while said hauliers in his constituency understood, "what the Government needs to do to put the deficit right, but they urge him to do something that was in our manifesto, namely bring forward a stabiliser. They do not understand why we have not done it already".

Replying for the Government, David Gauke acknowledged the level of concern among our MPs but added, "It is right that we must ensure that whatever we do is not only fair, but affordable".

And that could be the sticking point. We understand that ministers are actively considering ways of helping motorists but we've also been told that some Conservatives, not from our region, are telling Mr Cameron that cutting fuel duty would leave a big hole in the Treasury's plans to reduce the budget deficit.

They are also pointing out that compromising on this issue would set a dangerous precedent: if the Government's reacted to the protests of motorists - what about forests and Child Benefit?

It seems clear there will be something for motorists in next month's budget, but perhaps we shouldn't be holding our breath.

Comments

  • Comment number 1.

    Petrol and diesel prices are out of control.
    Some time ago when prices were approaching £1.00 a litre, haulage companies created havoc on the roads in protest. Now the prices are reaching £1.40 a litre and nothing has been heard from them. I find this most disconcerting, as they have proven that Joe publics' voice counts for nothing whereas theirs can have a major impact on fuel prices.
    What can be inferred by this lack of protest? Only one reason comes to mind.
    That the government and haulage companies have an agreement whereby additional fuel costs are offset by some form of tax benefit.

    Why has the inaction of hauliers over fuel prices not been investigated by news agencies, such as, the ³ÉÈË¿ìÊÖ, ITV, SKY and the newspapers?

  • Comment number 2.

    Agreed Ron - our prices in North Cambridgeshire are around £1.35 to £1.38 a litre.

    We need our car to compensate for the abysmal public transport and the additional prospect of more lorries on the road using subsidised fuel is not one I would welcome.

    To make matters worse, it is very likely that the larger transport companies are buying fuel at considerably less than normal purely on the grounds of volume price cutting. The larger fuel companies will compete to get volume business from them and the smaller delivery company and the general public are left to suffer.

  • Comment number 3.

    Transport companies !
    These guys are registered for VAT, so can claim the VAT on fuel back.
    The fuel cost plus fuel tax is a business expense, so can be used for tax purposes.
    I reckon, without any quantity discount, that transport companies are effectively paying about 90p/litre.
    And buses get a rebate on fuel tax as well as the VAT reclaim.

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