AA: Don’t penalise motorists for cheaper fuel

The AA has urged Chancellor George Osborne not to take advantage of lower petrol prices by increasing fuel duty in the next Budget.

Prices at the pumps have fallen recently and the AA is concerned the Chancellor will see this slight slackening in motorists’ expenses as an opportunity to increase revenues.

However, the AA president Edmund King OBE argues that drivers are already paying their share, with fuel duty and VAT making up around three quarters of the price UK motorists pay for fuel.

He added that motorists are also still coming to terms with increased costs from the Chancellor’s last Budget, where he announced a rise in Insurance Premium Tax.

This has since added £18 to the average quoted car insurance policy.

Speaking to This is Money, Edmund said, ‘The country is emerging from recession and there is greater confidence among British families. Not only do hard working families rely on low fuel costs for their day-to-day driving but industry is also dependent on motor fuel for deliveries and mobility of their workers.

‘The AA doesn’t expect low fuel prices to endure given the commodity markets are looking to lift the price of oil.

‘We welcome the government strategy to shield motorists from duty rises in the past because of previous fuel price volatility. But we urge the Chancellor not to use low fuel prices as an excuse to increase fuel duty now.’