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Leading used car website Trusted Dealers, in partnership with the NFDA (National Franchised Dealers Association), has urged the Chancellor to reduce fuel duty by 10p per litre ahead of his autumn statement, following the results of a survey showing the attitudes of UK motorists towards sky high costs.
New research from 1,000 UK car owners carried out for Trusted Dealers in October 2013 revealed that an overwhelming majority (79.9%) reported their preference for a cut in fuel duty if relief could only be applied to one thing – dwarfing alcohol (8%), cigarettes (6.8%) and all others combined (5.3%). Trusted Dealers says a cut of just 10p per litre on fuel duty could save the average motorist nearly £300 a year.*
According to Trusted Dealers, this major poll of car owners demonstrates that fuel is an essential purchase, not a luxury, for most of them. Trusted Dealers Managing Director, Neil Addley, said:
People’s priorities are clear, with concern about fuel costs scoring so high because it is a necessity.
Fuel prices have risen significantly over the past decade. In 2003, the average price of petrol in November was 76p a litre, rising by a huge 71% to the current price of 129.89p a litre in 2013. This means on average motorists are now spending almost £1,300 more a year filling their cars.
Since March 2011, the UK duty rate for unleaded petrol, diesel, biodiesel and bioethanol road fuels has been 57.95p per litre, with VAT of 20% also levied on that duty and then on the fuel price.
This means that out of November’s average UK unleaded pump price of 129.89p a litre, motorists would have paid the exchequer a total of 79.6p (57.95p duty and 21.65p VAT)**, nearly double the actual product price of 47.8p***, leaving just 2p to be shared between the retailer and distributor.
The Chancellor is expected to announce a freeze on fuel duty in his statement on 5 December, but Neil Addley says this is not enough.
Even though the Chancellor is expected to announce a freeze on fuel duty in the Autumn Statement, it’s not enough. We must have bold relief from a burden created by successive governments who have viewed motorists as a cash cow to be bled while occasionally justifying swingeing duty with lip service to environmental issues. It impinges on what is often a vital lifeline for individuals, particularly the poorest, erodes business margins and weakens national competitiveness with European countries, most of whom have a far lower fuel duty rate.
With the recovery fragile at best and most consumers and businesses yet to feel it, a ‘holding pattern’ on fuel duty pending a future increase is not an option. The Chancellor now has a golden opportunity to capitalise on the biggest fall in petrol and diesel in five years and stimulate a real recovery by significantly reducing the cost of motoring and getting Britain moving again.
Recent figures**** revealed East Anglia is the most expensive place for petrol, with an average pump price of 131.1p a litre, and Yorkshire and Humberside is the cheapest at 130.1p.
For more information please contact Carys Samuel or Louise Vaughan at Acceleris Marketing Communications on 0845 4567 251 or email email@example.com
Notes to Editors